Southeast Asian authorities continue to develop digital currency laws
RegulationBit News Today2 min read
Governments across Southeast Asia are stepping up efforts to regulate the exciting waters of cryptocurrencies and Initial Coin Offerings (ICOs).
Speaking at a Tuesday press conference reported by the Manila Times, Philippine Securities and Exchange Commission (SEC) Commissioner Emilio Aquino said the regulator may classify ICOs as "possible securities" under the Securities Regulation Code, aligning with measures in the U.S., Malaysia, Hong Kong, and Thailand. This move comes as the SEC and the country's central bank, Bangko Sentral ng Pilipinas, are in talks over licensing cryptocurrency exchanges. Aquino stated, “This initial coin offering — depending on, as said, the facts and circumstances in which the offering is made especially in raising capital — may be considered as securities, in which case they cannot just be offered without registering with SEC.” Some companies have already been registered with the BSP, though their operations are limited to remittance services. However, BSP Governor Nestor Espenilla Jr. has suggested this could change, with more exchanges gaining permission to act as money changers.
Across the Causeway, Malaysia's central bank Bank Negara Malaysia (BNM) is shifting its position from non-regulation to developing active rules for those trading and exchanging cryptocurrencies in the country. In early 2014, the institution stated that it "does not regulate the operations of bitcoin" and "does not consider bitcoin to be legal tender. At a symposium on September 19, BNM Governor Muhammad bin Ibrahim said the bank plans to draft rules for cryptocurrency traders and exchanges that would also reinforce existing anti-money laundering and counter-terrorist financing measures.
The nation-state of Singapore is also clarifying its legal stance on the technology, especially in terms of anti-money laundering and financing of terrorism. In August, the Monetary Authority of Singapore (MAS) announced that certain token sales would be regulated as securities. The MAS stated in its new guidelines that it will establish a payments service framework covering companies involved in "the dealing or exchange of virtual currencies for fiat or other virtual currencies," specifically to address money laundering and terrorism financing risks. Included in the new guidelines are instructions on what kinds of digital tokens may be regulated as capital markets products under the SFA.
Further east, the government of Vietnam is solidifying a very different approach in the space: a ban on using cryptocurrencies as payment, a move that appears to shut the door on recognition of bitcoin as a legitimate form of payment. In a statement, the State Bank of Vietnam noted that cryptocurrencies are not legal payment methods and that the "issuance, supply, use of bitcoin and other similar virtual currency as a means of payment is prohibited." Starting January 1, 2018, using illegal payment methods like bitcoin could lead to prosecution and fines between 150 million ($6,600) and 200 million ($8,800) Vietnamese dong.
According to the news service VNA, Prime Minister Nguyen Xuan Phuc approved a plan directing ministries to draft a regulatory framework that could formally recognize bitcoin by the end of 2018. According to VNA, Vietnam also aims to put a tax framework for cryptocurrency users in place by June 2019.
