Malaysia Security Commission has published a detailed set of guidelines for regulating digital coin offerings. Digital token offerings in the country would now be done through initial Exchange Offerings (IEOs) instead of Initial Coin Offerings (ICOs).
The securities Commission noted that no entity would be permitted to conduct any digital token offerings in the country until the implementation of the new guidelines. This newly introduced crypto token sale regulation is expected to be implemented at the later part of the year. IEO platforms would be required to assess the token issuers and digital token itself and ensure that they meet eligibility criteria.
Crypto exchanges registered as IEO operators are expected to maintain a minimum paid-up capital of $1.2 million. Furthermore, those looking forward to trade ICO tokens must also possess a Digital Asset Exchange (DAX) platform license.
The US Securities and Exchange Commission had earlier issued a statement warning investors of Initial Exchange Offerings. The commission said such offerings might not be complying with securities laws. They had also warned that they might fight against exchanges that carry out IEOs.
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