Summary: Proposed ICO Regulatory Framework by Securities Commission Malaysia

A summary on the proposed ICO Regulatory Framework by Securities Commission Malaysia:

– Company with minimum paid up capital of RM500,000, locally incorporated, with main business operations in Malaysia
– Should not be a public listed company, although the plc can establish a separate entity
– Board of directors and Senior management to collectively hold 50% equity, cannot dispose for a period of 18months
– Total funds raised is limited at a ceiling of RM100 million, 50% of the proceeds to be utilized in Malaysia
– Appointment of trustee and creation of trust account (drawdown is based on milestone)
– AML/KYC monitoring and other risk requirements (cyber risk management, conflict of interest, etc.)
– Annual/quarterly reporting to SC and investors

Link to the Securities Commission Malaysia ICO framework : Source

Link to the Consultation Paper : Source

Link to the Summary deck : Source

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