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KUALA LUMPUR: The regulation of digital asset or cryptocurrency trading and initial coin offerings will come into effect by the first quarter of 2019, said Finance Minister Lim Guan Eng.
He said Wednesday that the Securities Commission (SC) had let him know that the regulations would be part of the efforts of the SC to facilitate the search for alternative funds and new categories of investment assets.
"Some parties may still be skeptical about this space, but there is no doubt that we need to put in place appropriate regulations to protect the interests of investors," he said in the opening statement at the FinTech 2018 conference organized by the SC.
He also reiterated his statement to Parliament that stakeholders should work within the framework set up by Bank Negara Malaysia and the SC.
"Both Negara Bank and the SC, for the formulation of this framework, will be placed under the auspices of the Ministry of Finance. The Ministry of Finance will lead the committee composed of Bank Negara, the SC and the Ministry of Finance itself, "he said.
In his commitment to support high potential and innovative MSMEs, Mr Lim also said: "We want to find new alternative financing routes for these companies to be developed beyond traditional financing channels".
The government had allocated a co-investment fund to crowdfunding equity and peer-to-peer (P2P) funding platforms.
The co-investment fund (CIF), worth 50 million rand, will match the investments of private investors on a one to four basis. RM1 government and RM4 private funds.
This mechanism relies on the collective wisdom of the crowd, instead of the investment committee of a bank or committee of a fund managed by the government, to support the MSMEs who have been validated by private investors.
"With this, we hope to be able to make faster disbursements to support more deserving MSMEs, while providing greater transparency in the use of public funding," he said. -he declares.
CIF will operate under a commercial mandate to eventually become self-sustaining through returns on its investments, with revenues redirected to fund more ECF and P2P campaigns.
"If successful, the FIC would self-replenish and no longer depend on new government funding, which would help lower our tax burden.
"I hope that this fund will stimulate our industry ECF and P2P, while posing a challenge to our operators. Demonstrate your effectiveness as a platform for financing innovative SMEs in Malaysia. The government will channel more funds for SMEs. through these market-based financing platforms, as part of the increased democratization of SME financing.
"The final details of the fund are being developed by the SC and the CIF should be operational by the beginning of next year," he said.
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