KUALA LUMPUR, Jan 15 -- The Securities Commission Malaysia (SC) has published a guideline on digital assets that outlines the framework for fundraising through digital token offerings in Malaysia.
According to the SC, an issuer may raise funds up to a ceiling of RM100 million and tap on investments from retail, sophisticated as well as angel investors, subject to the investment limits provided in the guidelines.
"Each issuance must be accompanied by a white paper, which should provide investors with material information on the issuer, the digital token and the utilisation of funds obtained through the issuer’s fund-raising exercise.
"After the offering has been successfully completed, the SC will conduct post-issuance monitoring of the utilisation of the proceeds," it said in a statement today.
The regulator said the guideline sets out the requirements for all offerings of digital tokens to be carried out through an initial exchange offering (IEO) platform operator that is registered with the SC.
"In this regard, the IEO platform operator would be required to carry out the necessary assessment and due diligence to, among others, verify the business of the issuer and the fit and properness of the issuer’s board, as well as understand the features of the digital tokens,” it said.
The SC said the guideline also sets out the requirements for IEO platform operators and the process to seek authorisation from the SC.
"The guidelines would be brought into force in the second half of 2020 to allow potential issuers, platform operators and investors to familiarise themselves with the requirements in the guidelines.
"During the first phase of the implementation of the guidelines, the SC would work with the relevant platform operators in assessing eligible issuers," it said, adding that prospective issuers must also satisfy governance and capital requirements in order to be eligible to raise funds through an offering of digital tokens.
The SC also said issuers are required to demonstrate that their proposed project or business provides an innovative solution or a meaningful digital value proposition for Malaysia.
"The SC would like to remind members of the public that until the coming into force of the guidelines, no person is permitted to offer or issue any digital tokens in Malaysia," it added.