Malaysia's Securities Commission publishes Guidelines on Digital Assets

The Securities Commission Malaysia (SC) today published the Guidelines on Digital Assets (Guidelines) that outlines the framework for fundraising through digital token offering in Malaysia.

As stated in the SC’s earlier consultation paper on the “Proposed Regulatory Framework for The Issuance of Digital Assets Through Initial Coin Offerings”, an Initial Coin Offering allows a company with an innovative business proposal to raise capital before it is able to do so through venture capitalists or lenders. It also allows the company to raise funds without selling their equity or taking out a debt while developing their innovative ideas.

“Digital tokens offering can provide another alternative fundraising avenue for early stage entrepreneurs. This initiative supports Malaysia’s Shared Prosperity Vision 2030 (SPV2030) by supporting the growth of SMEs and micro businesses which are targeted to contribute 50% to Malaysia’s GDP. It also aligned with SPV2030’s aspiration to create 30% high technology Malaysian companies,” said Datuk Syed Zaid Albar, Chairman of the SC.