Observers on securities of Malaysia are planning to introduce cryptocurrency regulations

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Speaking yesterday at the Digital Finance Conference of SCxSC in Kuala Lumpur, the chairman of Securities Commission Malaysia (SC) Tan Sri Ranjit Ajit Singh, explained that SC is working on "appropriate regulations and recommendations" for the functional applications of digital assets. These include "trading in the secondary market of established cryptocurrency and digital assets" in the capital market, he said.

According to a report of Edge Markets, Ranjit noted that the SC is working closely with the central bank of the country, Bank Negara Malaysia (BNM), to draw up a framework on cryptocurrencies, which it expects to complete in the coming months.

According to the report, Ranjit further said that various exchanges of cryptocurrency have approached the regulator and that, once the structure is stated, then the SC would see which exchanges are registered.

The SC chairman also said that his agency is working on a pilot project to study technology of distributed ledger technology (DLT) for the stock exchange and over-the-counter markets.

While planning to promote digital innovation in the capital markets of Malaysia, Ranjit said that the findings from the pilot would be published as an "industry plan".

This news may mean a softening of the country's previous position on the trading of cryptocurrencies. Just a month ago, the central bank indicated that it would decide on whether to prohibit the trading of cryptocurrencies before the end of the year.