Insights / Updates

Stay up to date with legal developments in Malaysia.

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Are There Opportunities In A Trade War?

The US-China trade war has seen both countries engaged in a tit-for-tat imposition of tariff sanctions across a wide range of products. Many companies have started to change their logistics and supply chains to take advantage of favourable trade laws that can mitigate the impact of the US-China tariffs. This Update explores the economic opportunities that this trade war has created for the ASEAN region and how local businesses can take advantage.

TMT Update: Securities Commission Malaysia Seeks Public Feedback on Proposed Initial Coin Offering and Property Crowdfunding Regulatory Frameworks

In this Technology, Media and Telecommunications Update, we wish to bring your attention to two consultation papers issued by the Securities Commission Malaysia (“SC”) on 6 March 2019:

  1. Public Consultation Paper No. 1/2019 - Proposed Regulatory Framework for the Issuance of Digital Assets Through Initial Coin Offerings (ICOs); and
  2. Public Consultation Paper No. 2/2019 - Proposed Regulatory Framework for Property Crowdfunding.

The Public Consultation Paper on ICOs discusses the proposed regulatory framework for the eligibility of issuers, the need for transparent and adequate disclosures as well as utilisation of proceeds from ICOs, whereas the Public Consultation Paper on Property Crowdfunding follows on from the announcement of Budget 2019, which identified crowdfunding platforms as an avenue of alternative funding for first-time homebuyers. Feedback and comments must be submitted by 29 March 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.