Securities Commission Malaysia to set up a cryptocurrency regulation framework
Securities Commission of Malaysia plans to set up regulations for digital currencies
Plans are ongoing to set up a framework for regulating digital currencies in the Malaysian market. Securities Commission Malaysia took this decision as the security regulator in the country.
The Securities Commission Malaysia established on 1st of March 1993 acts as the security watchdog of the country’s capital market. The Securities Commission is responsible for systematically developing and regulating the financial aspects in the capital market.
Tan Sri Ranjit Ajit Singh revealed this information at the SCxSC conference held in Kuala Lumpur. Ranjit is the chairman of Securities Commission Malaysia (SC). The commission organizes the SCxSC conference as an annual event to discuss topics under Digital Finance.
Ranjit explains the SC is considering the possibility of creating “necessary regulations and guidelines” for specific functions related to digital assets. Secondary market trade for cryptocurrencies and assets within the capital market is one of these functions.
Regulatory framework of Securities Commission Malaysia
According to “The Edge Markets” website report, Ranjit indicates that SC will work with Malaysia’s central bank to achieve this purpose. Bank Negara Malaysia (BNB) acts as the central bank of the country. The plan is to prepare and finalize a functioning framework on digital currencies within the next few months.
According to sources, Ranjit further mentions SC will look into the secondary market and create regulations. These regulations will help to keep the trade values in the right conditions. This will allow to secure market integrity and to predict investment opportunities within the country.
Ranjit reveals that there are trade corporations of several cryptocurrency exchanges applying to register on this framework. The SC will look into the registration process once the framework is completed.
There are reports of an ongoing pilot project to navigate into the Distributed Ledger Technology (DLT) for off-exchange and unlisted markets. SC will publish the results of this project as an “industrial blueprint”.
This will be good news to the people dealing in cryptocurrencies within the country. Earlier there was a plan to ban all cryptocurrency transactions in Malaysia by the end of this year. The new regulatory framework proves that there will be no such ban going forward.