Having adopted rules for cryptocurrency regulation, Malaysia updated the legal framework in 2018. According to them, exchanges, exchangers, and organizations converting non-fiat funds are equated with “reporting agents”. Control over the field is given to the Central Bank of the state (Bank Negara Malaysia) and the main regulator - the Securities Commission. It must regulate relations within the framework of the ICO and issue licenses for the exchange of cryptocurrencies.
Despite legislative progress and efforts of the Malaysian authorities to combat fraud, there is no developed mechanism for verification and determination of the legal status of crypto funds in the country. According to the Central Bank, the regulation of the field will be carried out within the framework of anti-money laundering and terrorist financing policies. The state does not have a transparent mechanism for protection against losses in cryptocurrency transactions.
The matter of licenses for cryptocurrency issue and the legal status of non-fiat funds is considered by the Malaysian government, but the electronic money exchange is self-regulated. Issuers have the right to establish their own rules, making sure that the tokens would comply with the law on the capital market of 2007 and fall under the securities legislation. Now Malaysian Bank Negara is developing rules that determine the direction of non-fiat funds development in the country. Judging by the statements already released to the public, they are promising, and a local cryptocurrency exchange license will benefit businesses.
All issues of non-fiat funds turnover are under the supervision of the Securities Commission, and the cryptocurrency license will be issued depending on the compliance of the exchanger with the Regulator's rules. It is endowed with a wide reference to control the exchanges and ICO, may announce the organization’s activities termination due to non-compliance with standards. To work legally in Malaysia, the exchanger must:
"Prifinance" company will help to deploy a cryptocurrency business that meets current Malaysian standards and international requirements. Experts will provide organizational and legal support, develop a corporate and a tax model, prepare a documentation required to be submitted to the regulator.