A new regulation ordering cryptocurrency in Malaysia will become effective on Tuesday, according to a Reuters report published on Monday.
Virtual currencies, tokens and crypto assets will all be classified as securities and supervised by the Securities Commission’s authority, according to the new regulation.
As of January 15, any cryptocurrency exchange or company operating Initial Coin Offering (ICO) will be subject to a 10-year jail sentence in addition to a $2.4 million fine.
Malaysian finance minister, Lim Guan Eng, has revealed the new regulation stems form the country’s embracement of digital assets and the blockchain technology.
“Digital assets and their underlying blockchain technologies are having the potential to bring about innovation in both old and new industries,” the Ministry of Finance statement said.
It is worthwhile to mention that most of the top 20 cryptocurrencies
traded lower on Monday, with the Bitcoin and Ethereum losing 2.18 percent and
3.16 percent respectively.