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Malaysian Finance Minister Lim Guan Eng revealed that a new set of detailed regulations guiding cryptographic exchange and ICO activities would come into effect in the first quarter of 2019.
Speaking Wednesday in Kuala Lumpur at the 2018 FinTech conference organized by the Malaysian Securities Commission, he revealed that the new regulations were part of efforts by the Malaysian Securities Commission to catalyze the growth of the Malaysian Securities Commission. Alternative fundraising and investments in new asset classes.
A comprehensive regulatory framework finally?
Making the announcement while delivering the keynote speech at the event, he said the system developed jointly by Bank Negara Malaysia (the country's central bank) and the SC would serve as a comprehensive regulatory framework for all stakeholders in the region. cryptography sector. Mr Lim also pointed out that, in a climate of suspicion, consumer protection was the top priority in decision-making.
He said:
"Some parties may still be skeptical about this space, but there is no doubt that we need appropriate regulations put in place and enforced to protect the interests of investors. […] Both Negara Bank and the SC, for the formulation of this framework, will be 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. "
According to Lim, the regulatory framework is a key element of the Malaysian government's efforts to stimulate the growth of alternative financing for "high-potential and innovative MSMEs", which is a strategic focus for the government as it seeks to encourage private sector growth and reduce the government's tax burden.
In a financial climate where conventional sources of finance are either overwhelmed or reluctant to lend to innovation-driven startups, the growth of cryptocurrency-based financing solutions, such as ICOs, offers a welcome alternative to the emerging economy of Malaysian knowledge. Seeing here an opportunity for economic growth, the Malaysian authorities have taken a series of measures to facilitate these opportunities for alternative investment.
It has funded the Co-Investment Fund, a program that works with crowdfunding and peer-to-peer funding platforms, designed to contribute 25% to private investment.
In Lim's words:
"With this, we hope to be able to achieve faster disbursements to support more deserving MSMEs, while providing greater transparency in the use of public funding."
This decision could potentially give a significant boost to the adoption of cryptocurrency in the country after allusions to the regulation of crypto. Earlier in the month, CCN reported that Lim had sent a letter to the Malaysian parliament stating that, if the government did not oppose cryptocurrency, he wanted his regulatory guidelines followed.
Selected image of Shutterstock.
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