KUALA LUMPUR (July 3): The Securities Commission regulatory framework on initial coin offering (ICO) will be finalised in the second half of this year, said deputy finance minister Datuk Amirudin Hamzah.

Amirudin said this at the Dewan Rakyat today, to a question from Ahmad Fahmi Mohamed Fadzil [PH-Lembah Pantai] on the government's policy on e-wallet and digital cryptocurrency.

"To increase transparency and reduce the risk of money-laundering and terrorism financing, regulations have been issued to introduce reporting obligation and customer due diligence on the digital assets market," he said.

SC has issued its consultation framework on ICO on March 16, and sought public feedback until March 29 this year.

"The regulatory approach by Bank Negara Malaysia and SC is intended to support industry innovation, while ensuring the risk towards digital assets activities remain under control," Amirudin said.

The SC, he added, has developed a regulatory framework on digital assets trading activities, following the enforcement of Capital Markets and Services (Prescription of Securities)(Digital Currency and Digital Token) Order 2019 on Jan 15 this year.