26 February 2019

On 31 January 2019, the Securities Commission Malaysia (“SC”) amended its Guidelines on Recognised Markets (“Guidelines”) to introduce new requirements for electronic platforms that facilitate the trading of digital assets. Under the revised Guidelines, any person who is interested in operating a digital asset platform is required to apply to the SC to be registered as a recognised market operator (“RMO”).

The amended Guidelines follow the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on 15 January 2019. Any person who is interested to operate a digital asset platform, including those operating within the current transitional period, has to submit an application to the SC by 1 March 2019.

Some of the key amendments to the Guidelines are as follows:

  • Amendments to the general requirements for all RMOs by introducing requirements for outsourcing, submission of rules, directors and clarifying the ongoing obligations of the RMO.
  • Introducing a new chapter on the additional requirements to be complied with by a person who wishes to operate a Digital Asset Exchange.
  • Amendments to clarify that an RMO must be structured as a body corporate unless otherwise specified by the SC.
  • Streamlining current obligations of P2P operators.

Reference materials

The Guidelines can be found on the SC website www.sc.com.my or by clicking here.

 

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