Malaysia’s Central Bank Caution Unauthorized Cryptocurrency platform Coinzer
A Malaysian initial coin offering (ICO) issuer was reported by the country’s central bank for breaking the rules in order to showcase its token sale.
“The use of BNM logo and Jata Negara on the proposed physical coin design, white paper and website are unauthorized,” the central bank said on its website.
The BNM advised the public to exercise caution and assess the risks associated with investing in digital currencies.
Digital currencies are not legal tender in Malaysia. As a result, digital strategies are not covered by prudential and market standards or regulated by the BNM.
An image posted by the central bank shows overseas, in addition to the logo and coat of arms, the drawing is incorporated into the 14-branch Malaysia star symbol and the country code of Malaysia.
BNM’s warning is another signal that the country’s regulators are stepping up their efforts in national surveillance projects that, through unauthorized promotional methods, can mislead domestic investors.
“Coinzer is working closely with the Malaysian Government and the relevant authorities to acknowledge and approve our operation in Malaysia as well as to help them better understand both Coinzer and the industry more broadly: how Cryptocurrency platforms like Coinzer work, how Coinzer will help build a better economy for Malaysia and how other countries are proposing regulation.”
In a statement Coinzer said:
Even though the industry is relatively unregulated, “regulators in many countries especially Malaysia are aware that this new technology and financial innovation will not only enhance productivity of economic activities, but also make financial inter-mediation more seamless”.
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