Malaysian Authorities to Extend Crypto Regulations to Wallet Providers
Godfrey Benjamin Jul 25, 2020 05:30
The Malaysian Securities Commission plans to extend crypto regulations to wallet providers in the country owing to their importance in the cryptocurrency ecosystem.
The Malaysian Securities Commission (SC) has announced that it plans to extend additional regulations to cover both old and new wallet providers in the country. The new regulation will be infused into the existing regulations governing cryptocurrencies related activities in Malaysia. The new regulations are expedient owing to the important role of cryptocurrency wallet providers in safeguarding digital assets. While the Securities Commission did not offer details on what the new framework would look like, it sure has invited stakeholders for an engagement session on or before August 14.
Malaysia Seeks Industry-Wide Inclusion for its Crypto Regulation
Following the impending financial crises owing to the coronavirus pandemic, there have been calls for stricter regulations in the blockchain and cryptocurrency ecosystem. With visible cryptocurrency activity history, the Malaysian approach to crypto regulation can be described as dual-faced: both friendly and stern. Despite its conspicuous presence in Asia, the Securities Commission of Malaysia recently declared Binance as being unauthorized to operate in the country. The country’s published cryptocurrency regulations have a comprehensive guideline and requirements bordering on digital token offerings and the registration of IEO operators.
On the requirements for digital token offerings, the Securities Commission seeks to help develop home-grown cryptocurrency firms and mandates that such companies must have an innovative value proposition before being granted a license to operate. The guidelines also come with an exposition giving IEO operators the leverage to act on behalf of the SC in registering companies seeking to embark on digital token offerings. The 46-page guideline has obvious lacunas which the SC is hoping to fill once its deadline for open engagement has elapsed.
The Role of Wallet Providers
The role of wallet providers in the cryptosphere cannot be over-emphasized. With the susceptibility of crypto assets to cyber thefts, the wallet providers provide a secure option for safeguarding digital assets. Wallet providers also bring additional values beyond their core responsibilities of asset safekeeping, some provide the gateway to let users earn additional income through strategic integrations with DeFi platforms
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