Malaysia to offer its first cryptocurrency in 2022

Malaysia gives nod to its digital currency, available from 2022
  • DACs and CEOs have nine months to file the documentation necessary to obtain the license to work.
  • Three firms which have received the right to run an exchange platform from the SC.
  • They are Luno Malaysia Sdn Bhd, Sinegy Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd

With the increasing interest of people in Malaysia’s digital asset, the country is considering launching its cryptocurrency by early 2022. The Securities Commission Malaysia (SC) has received a very positive response from the institutions in the past four months which want to Initial Exchange Offering (IEO) operators

Local Cryptocurrency for Malaysia

2022 is the year of hope for the Malaysians as the country has nodded to the local cryptocurrency. The government may have its official first cryptocurrency offering in 2022. The reason is the increasing interest of the digital currency people over the past four years. 

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The Securities Commission Malaysia (SC) has received a very positive response from the institutions in the past four months, which want Initial Exchange Offering (IEO) operators. IEO is the market operators who conduct fundraising activities in the digital market. It works like the Initial Coin Offering (ICO). The IEO will also help the businesses to raise capital for their projects. For example, they are issuing digital tokens in exchange for fiat currencies or other crypto assets. 

Under ICOs, the crypto projects are approached directly to the investors, but fundraising through IEO mechanism will be carried out through digital asset exchanges (DAX). It will give regulators room to monitor and control the activities. 

Guidelines by SC

The SC regulates the digital assets’ custodians (DACs) and the IEO under its revised Digital assets guidelines. The guidelines were changed in October 2020. SC has informed that the firms can submit the form by Feb 15, 2021, who wants to be the IEO operator.

As per the guidelines, the DACs and CEOs have nine months to file the documentation necessary to obtain the license to work. The documentation should fully comply with the regulatory requirements, and before commencing the operation, it is required to put in place adequate investor protection measures. 

Other elements that will be considered are the value proposition of the applicant, technology competencies, compliance and risk management frameworks before issuing an approval for a successful candidate. However, no deadline has been decided for DAC applications. The DAC or Asset custodian could be a DAX operator. 

Requirement for License to run the exchange platform

There are three firms which have received the license to run an exchange platform from the SC. They are Luno Malaysia Sdn Bhd, Sinegy Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd. the usage of cryptocurrency and asset has become very popular in Malaysia in the past three years. The inclination is observed almost after the Bitcoin bull run rally in 2017. Businesses are also starting accepting bitcoin as terms of payment instead of fiat currency. 

The listed companies have shown interest to raise funds through ICO. 

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer from his education and developed his interest in the cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer.

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