Malaysia has banned ICOs while issuing regulations for IEOs |
Malaysia’s Securities Commission (SC) has published guidelines for crypto IEOs while revealing that Malaysia has banned ICOs.
Malaysia has banned ICOs and favors IEOs instead
Malaysia has tightened its regulations around token sales to reduce the risks faced by investors. As per SC’s new guidelines, the nation would only allow tokens that meet the strict assessment standards set by the agency would be allowed for sale in the country. As such, a token’s worth can be determined with assistance from the guidelines which would help both regulators and IEO platforms in operating.
The country only allows initial exchange offerings (IEOs) to conduct token sales. As such, initial coin offerings (ICOs) are now illegal in the country. Malaysia is one of the first countries to regulate IEOs. The agency revealed that the new regulatory shift would be implemented after the first half of 2020.
The SC’s guidelines regarding IEOs have now made crypto exchange platforms the sole vendors for token sales. The exchanges are now responsible for assessing tokens in conjunction with the SC. Crypto exchanges registered as IEO platforms are required to maintain a minimum paid capital of 1.2 million dollars or equivalent.
Moreover, the exchanges seeking to trade ICO tokens must have a Digital Asset Exchange (DAX) platform license. The requirements of registering for these licenses were revealed by the SC in February last year.
As for the party behind the token sale project, the company must have one director that is a resident in Malaysia. Token issuers are also required to have a minimum paid capital of 122,000 dollars.
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