Securities Commission Malaysia (SC) seeks a public response to a proposal that will allow cryptocurrency exchanges to list certain digital assets, which without obtaining clear approval from the first regulator.
On Monday AnnouncementRegulatory is considering liberalizing the structure to list certain digital assets on exchanges. Proposed RuleDigital assets meeting specific criteria can be listed without clear approval.
“It aims to expedite the market from time to time, (Crypto Exchange) operator accountability and product offerings widening,” the announcement said.
The new rules will hold the exchange accountable for your decision to list a specific asset. Listed digital assets must undergo a safety audit with publicly available results, and they should be traded for at least one year on the Financial Action Task Force-Complaint platform.
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Which assets can be approved?
SC is also on whether some types of assets, which look as a high risk, are demanding input, on this, it should be allowed for trading. These include secrecy coins such as Monroe (XMR), which have increased privacy in their design:
“The lack of transparency aspect in some digital assets appeals to individuals involved in illegal conduct, resulting in an increase in the risk of money laundering and terrorism financing.”
Other assets that are demanding regulatory comments are “to follow internet trends or popular culture”, usually known as Memcoin. In this case, the instability of this issue increases.
The regulator also wants input on assets with low market demand, such as “newborn utility tokens”, due to their high risk.
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Governance and custody rules were tightened
SC also proposed a revaluation of requirements for client asset security and governance. Digital exchange operators will be subject to more rigid rules, including requirements for the separation of user assets.
Crypto exchanges will also require to meet new minimum financial criteria, including policies and procedures to include policies and processes, which users facilitate re -renunciation in the event of loss of money loss or misuse and insolvency. Under the new rules, those institutions will also be required to identify a senior management member living in Malaysia, who are responsible for the administration of the wallet:
“This would be related to reducing the risk of customer property loss or misuse and reduce the risk of facilitating the movement of digital assets.”
Finally, Custadi users will need to attach assets to be registered as Digital Asset Custodians or to provide their services to an exchanges.
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