SC Orders Half of Malaysia’s Digital Asset Exchanges to Close

By Prosyscom
In March 12, 2019

According to a notice from Malaysia’s Securities Commission, 21 of the country’s 43 digital asset exchanges will be forced to close after they failed to register by the 1 March deadline.

Malaysia’s SC (Securities Commission) has allowed 22 digital asset exchanges to continue their operations for a transitional period after 1 March, but ordered 21 others to cease operations by 15 March.

According to a notice from the regulator, the 22 platform operators will not be permitted to accept new investors during the transitional period, and will only be allowed to facilitate the withdrawal or transfer of client assets, provided they have written instructions from the investor.

“Members of the public should also take note that this notice does not constitute an approval, authorisation or endorsement by the SC of any digital asset platform operators or any digital assets traded on the platforms,” the notice said.

The 21 exchanges that will not be allowed to continue to operate in Malaysia failed to apply to the SC for registration by the 1 March deadline, and as such have been removed from the approved list.

“Companies which did not submit their application to the SC by 1 March 2019 are required to take necessary steps to cease their business and return all clients’ assets by 15 March 2019,” the SC said.

The list of approved digital asset exchanges could still rise, as several foreign firms have expressed interest in setting up operations in the country, the regulator added.

Last week, the SC also published a consultation paper seeking feedback on a framework for ICOs  (initial coin offerings) which covers, among others, the eligibility of issuers, the need for transparent and adequate disclosures, and the utilisation of the proceeds of an ICO.

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