Home ICO Malaysia Bans ICOs and Introduces Stricter Rules for Conducting IEO

Malaysia Bans ICOs and Introduces Stricter Rules for Conducting IEO

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The Malaysian Securities Commission has recommended banning initial coin offerings (ICOs) and introducing regulation of initial coin offerings () through a series of checks. The Malaysian authorities are making radical changes in the unorganized sector.

The cryptocurrency market is thriving in the country and many international and national companies work on it. Thus, when , of course, this step will affect the Asian cryptocurrency sector.

The Commission has submitted new directives, which clearly stated that ICOs are illegal. In addition, before selling tokens, issuers must obtain permission from platforms, and only cryptocurrency exchanges are allowed to offer virtual tokens.

operators must have an authorized capital of at least $1.2 million and obtain a license to operate as a digital asset platform. Issuers of digital tokens must have an authorized capital of at least $123,000. They must have a Malaysian registration, and two directors must reside in Malaysia.

The new rules and regulations will be put into effect after June 2020. Until then, the sale of digital tokens by any exchange or individuals is prohibited. The new solution provides huge growth opportunities for IEO, as the upcoming token offerings will be effectively monitored, and dubious projects will be eliminated.

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