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Showing posts with label Regulators. Show all posts
Showing posts with label Regulators. Show all posts

Thursday, January 24, 2019

Malaysian Securities Commission to weed out virtual scams

SC innovation, digital and strategy executive director Chin Wei Min said those who have identified themselves to the commission can operate up to March 1. “Even if they don’t want to be in this business anymore, whatever they are holding, whether it’s money, crypto assets or digital assets, should be returned to their clients. Otherwise, we will take action.

KUALA LUMPUR: All companies engaging in digital assets will have to make themselves known to the Securities Commission (SC) by Friday, even if they have decided not to carry on once the regulatory framework comes into force.

This includes operators who are not registered with Bank Negara under the anti-money laundering and counter financing of terrorism – digital currencies (sector six) and those operating “underground”.

The SC will reserve the right to take action against those who fail to identify themselves by Friday on grounds of breaching the securities law.

SC innovation, digital and strategy executive director Chin Wei Min said those who have identified themselves to the commission can operate up to March 1.

“Even if they don’t want to be in this business anymore, whatever they are holding, whether it’s money, crypto assets or digital assets, should be returned to their clients. Otherwise, we will take action.

“The reason we also allow people to continue with their withdrawals and sell down is to ensure that there is an orderly market.

“The last thing we want is to cause confusion, and hopefully, there are no untoward fraudulent activities that people will capitalise on in this transition period and take advantage of investors,” he told a media briefing here yesterday.

While the regulation does not affect operators who are not incorporated in Malaysia, the SC can still take action against them under the Capital Markets and Services Act 2007 if the products are marketed, sold, or its operations exist in Malaysia.

Operators who identify themselves to the SC must state their intent, whether they want to resume their activities, of which certain obligations have to be met, or whether they want to wind down their business.

The SC will put up a list of operators and companies that have registered and received a letter from the commission for investors to check if their monies are with legitimate sources.

Chin also reiterated that operators are not allowed to accept new investors, list new products or conduct any sales and marketing activities during this period.

A statement by the SC last Thursday said platform operators would not be allowed to accept new investors and are only allowed to facilitate the withdrawal or transfer of client assets with the written instruction of investors.

They are also not allowed to conduct any initial coin offerings (ICOs) without prior authorisation.

Chin called on all ongoing ICOs to cease activities and the monies or digital assets to be returned to investors until the operators apply for authorisation and after they understand the SC requirements.

The guidelines are expected to be released by the end of the first quarter this year.

“If you are looking at the ones that are out there currently, the standards of the white paper are of low quality. It is important that this falls under regulated activity.

“We recognise that this is an alternative fundraising avenue. The idea here is to allow us to take out all the scams and fraudulent activities and at the same time, provide a platform for our early stage entrepreneurs to raise money,” said Chin, adding that the SC did not want people to take advantage of this as investors are pumping in money on the other end.

This is a high-risk investment and Chin also hinted that there could be a certain threshold for investors.

The Capital Markets and Services (prescription of securities) (digital currency and digital token) order 2019, which kicked in last Tuesday, will see those operating unauthorised ICOs or digital asset exchanges facing up to a 10-year jail term and up to a RM10mil fine.

The Finance Ministry said it viewed digital assets as well as its underlying blockchain technologies as having the potential to bring about innovation in both old and new industries.

 By royce tan The Star

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Tuesday, January 15, 2019

SC to regulate digital assets

Good move: Lim says many people have bypassed Malaysia because the policy was not clear about digital assets

Move seen to spur growth in digital currency sector


Regulatory oversight of digital currencies and tokens, which kicks in from today, offers timely clarity and transparency to various players in the fledgling industry.

Omni Capital Partners Sdn Bhd managing director Scott Lim said everything would be above board with the regulation and governance under the Securities Commission (SC).

“Digital assets in Malaysia have been underwhelmed mostly. A lot of people have been bypassing Malaysia because the policy was not clear about it.

“Certainly, now that this is regulated by the SC, it’ll be good. We shall wait for the guidelines,” he said.

Celebrus Advisory co-founder Edmund Yong said the regulation is very much welcomed and one which is needed, as it would spur growth in the industry.

Celebrus is a compliance-first blockchain consultancy firm.

He added that the statement by the Finance Ministry was very accommodative with the intention to use tokens and the recognition of it as a fund-raising tool.

“In fact, it can be an indirect source of foreign direct investment, a borderless method to raise funds.

“But from now until March 31, there will be a twilight period. Many activities will be stopped in their tracks because they don’t know where they stand.

“Some would possibly even move offshore because of the draconian RM10mil and 10-year imprisonment punishment,” said Yong.

He said digital tokens could also be for points in computer games or reward points, and it too would be quite draconian if it is all painted with the same brush.

The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 kicks in today and any person operating unauthorised initial coin offerings (ICOs) or digital asset exchanges faces up to a 10-year jail term and up to a RM10mil fine.

Digital currencies and digital tokens are collectively known as digital assets, which will now be prescribed as securities.

The SC is putting in place relevant regulatory requirements for the issuance of ICOs and the trading of digital assets at digital asset exchanges in the country.

This is expected to be launched by the end of the first quarter this year.

Finance Minister Lim Guan Eng said the offering of such instruments, as well as its associated activities, would require authorisation from the SC and needed to comply with relevant securities law and regulations.

“The Finance Ministry views digital assets as well as its underlying blockchain technologies as having the potential to bring about innovation in both old and new industries.

“In particular, we believe digital assets have a role to play as an alternative fund-raising avenue for entrepreneurs and new businesses, and as an alternative asset class for investors,” he said in a statement yesterday.

Any person offering an ICO or operating a digital asset exchange without the SC’s approval will face an imprisonment term not exceeding 10 years and a fine not exceeding RM10mil.

Federal Territories Minister Khalid Samad mooted the idea of the Harapan Coin last year, which would be the world’s first political fund-raising platform using blockchain and cryptocurrency technology.

In November last year, shareholders of Country Heights Holdings Bhd approved the company’s plan to conduct an ICO to issue its own cryptocurrency, called “horse currency”.

Country Heights founder and chairman Tan Sri Lee Kim Yew had said that the company would like to be the first to launch cryptocurrency in the country when the regulations are ready.

The company’s plan is to eventually issue one billion horse currencies backed by RM2bil worth of physical assets held by the holding company, with an initial 300 million open to the public for circulation.

StarBizBy ROYCE TAN roycetan@thestar.com.my

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    SC to regulate cryptocurrencies from tomorrow | Free Malaysia Today

     

    BNM, SC say drawing up rules on digital assets | Money | Malay Mail


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    Friday, December 29, 2017

    Bitcoin falls as S. Korea says exchange closures possible

    Downtrend: A small toy figure is seen on representations of the bitcoin virtual currency in this illustration. The cryptocurrency is down about 28 from its record high reached last week. — Reuters


    SEOUL: Bitcoin resumed its tumble after South Korea said it was eyeing options including a potential shutdown of at least some cryptocurrency exchanges to stamp out a frenzy of speculation.

    South Korea has been ground zero for a global surge in interest in bitcoin and other cryptocurrencies as prices surged this year, prompting the nation’s prime minister to worry over the impact on Korean youth.

    While there’s no immediate indication Asia’s No. 4 economy will shutter exchanges that have accounted by some measures for more than fifth of global trading, the news poses a warning as regulators the world over express concerns about private digital currencies.

    Bitcoin fell as much as 9% to as low as US$13,828 in Asia trading, erasing modest gains after the South Korean release, composite Bloomberg pricing shows. It’s now down about 28% from its record high reached last week.

    South Korea will require real-name cryptocurrency transactions and impose a ban on the offering of virtual accounts by banks to crypto-exchanges, according to a statement from the Office for Government Policy Coordination.

    Policy makers will review measures including the closure of crypto-exchanges suggested by the Ministry of Justice and take proper measures swiftly and firmly while monitoring the trend of the speculation. Bitcoin was trading at about a 30% premium over prevailing international rates yesterday in Seoul – a continuing sign of the country’s obsession, and the difficulty in arbitraging between markets.

    “Cryptocurrency speculation has been irrationally overheated in South Korea,” the government said in the statement, which comes little more than a week after the bankruptcy filing of one South Korean exchange. “The government can’t leave the abnormal situation of speculation any longer.”

    Singapore’s monetary authority warned last week that cryptocurrency buyers should be aware they could lose all their money, joining counterparts who’ve warned about speculative mania surrounding bitcoin, which has surged more than 1,300% this year.

    “Regulators are getting so concerned that this is primarily and predominantly a retail phenomenon,” said Stephen Innes, head of trading for Asia-Pacific at Oanda. “Regulators not only in Asia but globally are going to start addressing this fact because I don’t think they’ve actually come to terms with what the absolute downside of a complete drop in crypto means for the economy.”

    Source: Bloomberg

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    Saturday, December 3, 2016

    Structural defects to blame, stop history repeating itself !

    https://youtu.be/7FRTMX53TLc

    Sniffing out signs of life: The K-9 unit of the City Fire and Rescue operations looking for possible victims at the site of the bridge collapse near Kampung Haji Abdullah Hukum in Kuala Lumpur.

    KUALA LUMPUR: Structural failure possibly caused the collapse of an under-construction pedestrian bridge at KL Eco City near Kampung Haji Abdullah Hukum here.

    Department of Occupational Safety and Health (DOSH) director-general Datuk Mohtar Musri said the initial investigation suggested that a defective structure could have led to the disaster on Wednesday.

    He said the department would refer to the Construction Industry Development Board (CIDB) and Kuala Lumpur City Hall regarding the quality of materials used in the construction of the bridge.

    Works Minister Datuk Seri Fadillah Yusof said a task force has been set up to probe the incident.

    He said the result of the investigation was expected to be made public in a month, and that tough action could be taken against the developer if it was found to have flouted safety regulations.

    “We can bring them to court, not just under DOSH but CIDB too. Under the CIDB Malaysia Act 1994, they can face a RM500,000 fine or a two-year jail sentence,” he said.

    The RM7mil pedestrian bridge linking the planned KL Eco City project to the Gardens Shopping Mall in Mid Valley, which was still under construction, collapsed and killed one worker and injured five others on Wednesday.

    The search-and-rescue operation at the site of the incident was halted after it was confirmed that there was no worker trapped underneath the mangled brick-and-iron structure.

    City Fire and Rescue Department deputy operations chief Ruhisha Haris said K-9 teams had confirmed that there were no signs of a body.

    However, the mystery of the missing construction worker remains.

    “We first received information that a worker might have been trapped because a colleague saw him under the bridge minutes before it collapsed.

    “A head count by the developer also revealed a missing worker, but they were unable to give us a name,” he said.

    The dead victim has been identified as Tran Xuan Vang, 21, from Vietnam. Two other Vietnamese, Tran Van Hai and Luong Van Guyet, as well as Indonesian Nor Syamsi, Bangladeshi MD Jashim and Pakistan national Rais Aman Majid were injured and are currently being treated at Universiti Malaya Medical Centre.

    Medical staff were forced to amputate Rais’ left leg on site to save his life.

    In a statement issued on the day of the incident, SP Setia, the developer of the project, said it deeply regretted the incident and was working with the authorities in the investigation.

    “The project team is still assessing the situation,” it said.

    Work on the KL Eco City project – a mixed development comprising three residential towers, one serviced apartments tower, three corporate office towers, 12 boutique office blocks and one retail podium – started in 2011 and is scheduled to be fully completed by 2023.

    Commenting on the incident, National Institute of Occupational Safety and Health chairman Tan Sri Lee Lam Thye said the time had come for players in the construction industry to practise their commitment to safety.

    “All these accidents are preventable if the person in charge puts into practice good occupational and safety health measures and the site safety supervisor makes sure work is done properly,” he said.

    By M. kumar and Nicholas Cheng The Star/Asian News Network

    Stop history repeating itself


    THE Consumers’ Association of Penang (CAP) is horrified with the news of the collapse of the incomplete pedestrian bridge meant to connect KL Eco City and Mid Valley Megamall in Bangsar, Kuala Lumpur.

    Not even a month after a couple was crushed by a piling rig that fell on them at a construction site along Persiaran Astana, Klang, another tragic incident leading to serious injury and death has occurred.

    If all the parties involved in the building industry – including the local councils, developers, contractors, architects, quantity surveyors, structural engineers, DOSH and all the others – had carried out their roles and functions efficiently, this could have been prevented.

    Despite our repeated calls for the Government to conduct a full inquiry into the operations of the Department of Safety and Health (DOSH), it would seem like the relevant authorities are unable to comprehend the gravity of the situation.

    When incidents like this happen, it becomes clear to us that DOSH and developers do not have their priorities right.

    Instead of working on preventing such incidents, they wait until it happens before scrambling to take corrective measures to fix the problem.

    The issue here is that there are no corrective measures that can be taken once a life is lost; that is not something that can be recovered.

    Universiti Sains Malaysia’s (USM) Professor Datuk Dr Mahyuddin Ramli has been reported saying that incidents of this nature can happen when contractors do not comply with safety standards.

    In this case, he said that concrete takes at least a week to dry and harden; the wet weather we have been experiencing means it will take even longer.

    The USM professor also said that another way something like this can happen is if contractors do not use proper scaffolding during the construction process.

    The distance between scaffolds and the size of the scaffolds used are very important as they will vary according to the structure they are meant to hold up.

    DOSH’s director-general, Datuk Mohtar Musri, has stated that their initial investigation suggested that the incident happened because the structure was defective.

    He said that they need to look into the quality of the materials that were used to construct the pedestrian bridge.

    Whatever the cause, the relevant authorities and the public need to be aware that this is just history repeating itself.

    If the incident did truly happen because of a structural defect, then it needs to be made clear that nobody can plead ignorance.

    DOSH safety officers and onsite safety inspectors should have known about the structural defects if they did exist.

    This begs the question of whether or not proper safety inspections were done at the appropriate stages by the relevant parties.

    We ask that the results of the investigation into the latest incident be shared with the general public.

    CAP would also like to know what happened to the findings from the investigation of previous incidents.

    Why has this information not been shared with the public when their lives are also put in danger by the conduct of those at construction sites?

    In view of this, CAP calls for penal action to be taken against all parties who have been involved in the project. They should all be held accountable even if they were not directly involved.

    By S. M. MOHAMED IDRIS President Consumers Association of Penang

    [PDF]The Law of Construction Defects and Failures


    Worker killed in bridge collapse tragedy


    https://youtu.be/3QFRF_5oRAY

    The Star Graphics:  http://clips.thestar.com.my.s3.amazonaws.com/Interactive/midvalley/midvalley.mp4

    KUALA LUMPUR: A Vietnamese construction worker was killed and five others were injured when a 70m yet-to-be-completed bridge near Jalan Kampung Haji Abdullah Hukum and Mid Valley Megamall collapsed.

    The victim was buried in the rubble of the collapsed pedestrian bridge.

    As of press time, rescue workers were still searching for a Bangladeshi worker believed to be trapped in the rubble.

    The authorities have since mobilised the K9 unit to locate him.

    The firemen and paramedics were seen changing shift as the rescue mission continued into the night. Some were heard saying that locating the victim would be challenging.

    However, all the rescuers were resolute in their attempt to find the last victim, never once giving up hope.

    The five injured workers – two Vietnamese, two Bangladeshis and an Indonesian – were sent to the Universiti Malaya Medical Centre for treatment.

    Brickfields OCPD Asst Comm Sharul Othman Mansor said the bridge was 80% completed when the incident occurred.

    “We are still investigating the incident.

    “We were alerted at about 4pm of the incident and quickly mobilised a search-and-rescue team,” he said at the scene.

    Four roads were also affected by massive jams due to the incident.

    According to Star Media Radio Traffic, the affected roads were the Federal Highway from the arch, the Kerinchi Link after the Pantai toll plaza, Kerinchi Intersection from Bangsar South or Pantai Medical Centre and Jalan Syed Putra from the Kuen Cheng School till the Robson Intersection.

    While the main reason for the traffic congestion was due to certain road closures to make way for rescue workers, traffic was backed up near the mall due to many motorists slowing down to see the collapsed bridge.

    Mall patrons, construction workers and curious onlookers were seen crowding the area near the bridge, where it was cordoned off for safety precautions.

    By Farik Zolkepli, Jastin Ahmad Tarmizi, and Austin Camoens The Star/ANN

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    Govt may handle workplace safety


    Fadillah: Independent monitoring likely


    KUALA LUMPUR: The Government would like to take over the job of monitoring safety at construction sites away from developers following a string of deaths as a result of mishaps in the last three months.

    Those duties, said Works Minister Datuk Seri Fadillah Yusof, may be entrusted to third party organisations that will be given autonomy in the planning, execution and supervision of workplace safety at construction sites.

    Usually, these jobs are handled by contractors hired by the project developers but Fadillah said that this would mean the monitoring process was not independent.

    Speaking at the launch of the Sustainable Construction Excellence Centre (Mampan), the minister said the suggestion for independent monitoring was brought up by the experts at the centre.

    Mampan is headed by the Construction Research Institute of Malaysia (Cream), a subsidiary of the Government’s Construction Industry Development Board (CIDB).

    Fadillah said the proposal to appoint third party safety monitors would be implemented first in Government construction projects.

    He added that he hoped the private sector construction industry would do the same.

    Currently, the Department of Occupational and Safety Hazard (DOSH) monitors government projects but it is reportedly too understaffed to keep track of every project.

    For now we will have to make do with existing laws. This is why we need a commitment from the industry players,” he told reporters after the launch.

    For now we will have to make do with existing laws. This is why we need a commitment from the industry players. Datuk Seri Fadillah Yusof

    He said that Mampan would be a key organisation under the Government’s environmental sustainability initiative for its Construction Industry Transformation Programme.

    The centre will undertake research with Universiti Teknologi Malaysia, Universiti Kebangsaan Malaysia, Universiti Sains Malaysia and the Rehda Institute to instil better industry practices, certification and awareness in the construction industry.

    “We don’t want to build bridges that have no resilience and collapse when there is a flood.

    “Our short-term goal is to position Malaysia as a regional leader in sustainability in construction and to raise the perception of sustainability in construction here,” he said.

    Fadillah witnessed the signing of a Memorandum of Understanding between Cream chairman Tan Sri Dr Ahmad Tajuddin Ali and academics from the four universities and research institutes which will be a part of the new centre.

    By NICHOLAS CHENG The Star/ANN

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