The Guidelines on Digital Assets (“DA Guidelines”) issued by the Securities Commission Malaysia (“SC”) apply to all issuers seeking to raise funds through a digital token offering on an IEO platform.
The DA Guidelines are to be read together with other relevant laws and guidelines including payment services and foreign exchange administration laws administered by Bank Negara Malaysia (“BNM”). To illustrate this, where an issuer intends to issue a digital token which has the features of an existing type of securities such as unit trust funds, bonds, warrants or options, the issuer must also comply with the existing requirements for such issuance as set out in the relevant SC’s guidelines in addition to meeting the requirements under the DA Guidelines.
In Paragraph 2 of this Article, we briefly set out some of the provisions under the DA Guidelines which apply to an issuer, including the requirements that an issuer must satisfy prior to making a digital token offering.
