The Securities Commission Malaysia has published two consolation papers on initial coin offerings (ICOs) and property crowdfunding on March 6, 2019, and asked members of the public to leave their comments.
While governments around the world are implementing new laws regarding blockchain cryptocurrency, they do not always get it right. Case in point, a Swedish man owing over four times what he made in crypto trading due to tax laws and the recent requirement in Indonesia that requires $70 million in capital for futures trading which was highly criticized.
After these incidents, governments have made active effort to get input from the general public and those in the crypto industry regarding laws. This was recently done in Germany, and Malaysia is the latest country to do so. On March 6, 2019, the Securities Commission Malaysia (SC) issued consultation papers on their website calling for public input regarding new laws for ICOs and property crowdfunding.
This feedback is to be given by leaving comments under the two consultation papers. The post writes:
“The SC is seeking public feedback on the proposed regulatory framework which will, among others, set the eligibility requirements of first-time homebuyers, criteria of properties which can be listed on the platform, obligations of platform operators and financing limits,”
Tell Me Your Thoughts
This new development of governments actually seeking out input on blockchain and cryptocurrency matters is an encouraging sign as it shows that they are taking the industry more seriously and also that they are aware of the effect a law without proper context can have.
Also, it is rather interesting that they are seeking out opinions on ICOs. The crypto-crowdfunding method has been a bit of a bone of contention between the industry and governments. The Securities and Exchange Commission in the United States has shut down several ICOs across the years and in South Korea, ICOs are banned altogether.
Malaysia’s approach of getting proper information about ICOs before passing new laws shows a willingness to embrace a new industry and also a willingness to engage with the industry for the betterment of all. If all goes well, the Securities Commission Malaysia will get the feedback it needs and in time, new laws that benefit the Blockchain and crypto industry can be passed.