Today Malaysian government reclassified cryptocurrencies as securities
Effective from today, January 15th, Malaysian government is changing how they classify cryptocurrency, redefining it from digital assets to securities. The new classification of the digital currencies and assets means they can now be controlled by the Malaysian Securities Commission. A lot of the world’s leading economies, including The United States, have been classifying cryptocurrencies as securities for several years now, for both regulatory and tax purposes.
Lim Guan Eng, Malaysia’s finance minister, said that he believes the digital currencies can offer help to a multitude of business models and industries to transform their ways and processes. He also stated that the Malaysian Finance Ministry believes that cryptocurrency and other forms of digital assets can open up the doors for a new kind of investor and create new, innovative ways of raising money.
According to the country’s authorities, Malaysia is to enact full cryptocurrency and initial coin offering (ICO) regulations in early 2019.
Malaysian government expects digital currency to form 20% of the country’s gross domestic product (GDP) already by 2020. According to Eng, the new cryptocurrency legislation will be focused on the secured investment opportunities, which Malaysia is looking to achieve by implementing certain regulations governed by the central bank.