Legal Updates for February 2019

TMT Update: Securities Commission Malaysia Revises Guidelines on Recognized Markets to Regulate Digital Asset Exchanges

In this Technology, Media and Telecommunications Update, we wish to bring to your attention the Guidelines on Recognized Markets, which was revised and issued by the Securities Commission Malaysia ("SC") on 31 January 2019 (the "Revised Guidelines"). This follows the issuance of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, which came into force on 15 January 2019.

The Revised Guidelines seek to introduce a new chapter on the requirements to be complied to operate a digital asset exchange ("DAX"), i.e. an electronic platform which facilitates the trading of a digital asset. In light of this, any person who is interested in operating a DAX is required to apply to be registered with the SC as a recognized market operator ("RMO"). This update provides you with a summary of the Revised Guidelines, including the objectives and the key amendments provided therein.