Source: Securities Commission Malysia
The Securities Commission Malaysia (SC) today published two consultation papers to seek public feedback on the framework for Initial Coin Offering (ICO) and property crowdfunding.
ICO is an alternative fundraising avenue that leverages distributed ledger technology including blockchain. It involves the issuance of digital tokens by an issuer who 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 disclosures as well as utilisation of proceeds of the ICO.
Pursuant to Budget 2019, crowdfunding platforms have been identified as an avenue to provide an alternative funding source for first-time homebuyers, while providing investors access to a new asset class.
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.
The two consultation papers are available at the SC website https://www.sc.com.my/regulation/consultation-papers and the public can submit their comments to CPLawReform@seccom.com.my by 29 March 2019.