The Securities Commission Malaysia (SC) has published two consultation papers to seek the public’s feedback on the proposed framework for initial coin offerings (ICOs) and property crowdfunding. The papers can be accessed through the regulator’s website.
An ICO is an alternative fundraising avenue powered by distributed ledger technology which involves the issuance of digital tokens by an issuer that wishes to raise funds for a project or venture.
“The consultation paper discusses the proposed framework for, among others, the eligibility of issuers, the need for transparent and adequate disclosers as well as utilisation of proceeds of the ICO,” said the regulator in a statement yesterday.
Based on the consultation paper, the SC has proposed requirements similar to those imposed on equity crowdfunding and peer-to-peer platforms, which were introduced in February 2015 and April 2016 respectively.
