The regulatory bodies in Malaysia has reportedly drafted a guidelines for regulation, specifically demanding token offerings in nation to be tied with exchanges. 

Specifically, the initiative – believed to be fueled by the warning against (IEOs) published recently by the US SEC –  from the Malaysia’s Securities Commission (SC) clearly stated that crypto tokens will only have its use exclusively for goods and services with strict guidelines applied, effective starting late 2020. 

It is against the law to generate crypto tokens within the Malaysian soil, and the platforms themselves will handle the job of vetting issuers and approving token features. The lowest paid-up capital is 5 million Malaysian ringgit ($1,227,000).

Operators planning to conduct digital assets trading needs to be licensed to function as Digital Asset Exchange platform operators – a.k.a crypto exchanges. Issuers are required to satisfy the minimum paid-up capital of 500,000 ringgit ($122,700). 

Retail investors and angel investors must each meet the limit of 2,000 ringgit ($490.80) per issuer, without crossing the 20,000 ($4,908) ringgit, during a 12-month timeframe. 

Sophisticated investors – individuals with a high net worth and significant market – do not have to deal with limits in investment amount.a