KUALA LUMPUR: The Securities Commission (SC) and Bank Negara Malaysia have warned the public against initial coin offering (ICO) schemes which may involve activities that are subject to laws administered by both agencies.
“Carrying on such activities without proper authorisation is an offense.
"Issuers of ICOs should be mindful that the launching of an ICO, the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof, may trigger regulatory requirements under securities laws," a joint statement yesterday said.
Both agencies warned that no individual is permitted to carry out any regulated activities such as fundraising, fund management and dealing in capital market products without obtaining necessary approval or authorisation from the SC.
“ICO operators are prohibited from undertaking regulated activities such as deposit taking and banking business, foreign exchange administration activities and remittances, without the necessary authorisation under financial services laws administered by Bank Negara,” both regulating bodies said.
Members of the public are reminded to exercise caution before participating in an ICO and are advised to refer to the list of institutions that are licensed or approved to carry out regulated activities under the laws administered by the SC and Bank Negara.
Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorised activities.