PETALING JAYA –┬áSecurities Commission Malaysia and Bank Negara Malaysia have issued a joint statement cautioning issuers of initial coin offerings that they may be running foul of the law with the offering of digital tokens in exchange for digital currency or any form of payment and incidental activities thereof.

“In addition, no person 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,” the statement issued earlier said.

Itadded that 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 BNM.

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 BNM.

Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorised activities.

– Sundaily