Under the new regulation, Malaysia will only allow tokens that meet the strict assessment standards set by SC to be allowed for sale in the country.

To conduct token sales, Malaysia only allows initial exchange offerings (IEOs), so initial coin offerings (ICOs) are now illegal in the country.

For the token issuer, SC requires the company to have one director that is a resident in Malaysia and have a minimum paid capital of 122,000 dollars.

SC said that the new regulation would be implemented after the first semester of 2020.

SC will work with platform operators in assessing eligible issuers during the first phase of the implementation.