Malaysia's SC Provides Guidelines on Digital Assets to Push Regulated IEOs and Stop Fraudulent ICO

TALLINN, Estonia - March 30, 2020 - PRLog -- Just last month, crypto enthusiasts from all over Malaysia welcomed their country's Securities Commissions release of the official "Guidelines on Digital Assets" as this will lead to a much safer road for investors, issuers and stakeholders to tread on. The guidelines were dedicated to explaining the framework of digital token fundraising for offerings in the country. According to this, the said offerings will only be carried out via an initial exchange offering platform registered with Malaysia's SC regulator, very much unlike the unsafe initial coin offerings in other parts of the world, where tokens are just sold directly to investors without any government body or intermediary.

Through these provided guidelines, more and more investors are getting peace of mind knowing that they're putting hard-earned money into an asset issued by a regulated exchange and monitored, by law, through the local authorities. Kelvyn Chuah, co-founder of SINEGY Marketplace, had this to say: "Over the past few years, a large number of ICOs have gone unvetted. Hopefully, investors will now be able to easily differentiate real investments from risky schemes and potentially fraudulent ones." This was also strengthened by a statement from Bobby Ong, co-founder of CoinGecko, as he points out "The schemes continue to exist because people are inherently greedy. Financial literacy is also quite low among Malaysians and those who run the schemes are confident they can get away without getting caught."

Even though there was an official announcement by the SC last year about no one in the country being permitted to offer or issue any digital tokens in Malaysia pending the issuance of the guidelines that just came out, it didn't stop money schemes claiming to have leverage overblockchain technology to entice unwary investors. An example of this in Malaysia was EcoBit, a digital token said to be part of a carbon credit programme under the United Nations which was falsified as the intergovernmental organisation unequivocally denied any and all association with "EcoBit Asia Sdn Bhd" which backed the token in the first place.

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