Initial Exchange Offerings (IEOs) are an alternative channel for fundraising for innovative businesses through an offering of digital tokens, which can only be conducted via an IEO platform. In 2020 the SC has released the
Guidelines on Digital Assets (Guidelines) that outlines the framework for fundraising through a digital token offering, and the regulatory requirements for registering and operating an IEO platform.
Under the Guidelines, IEO platform operators will be required to assess and conduct the necessary due diligence on the issuer, review the issuer’s proposal and the disclosures in the whitepaper, and assess the issuer’s ability to comply with the requirements within the relevant Guidelines, before helping facilitate the offering.
The registered IEO operators will provide an alternative avenue for eligible companies to raise funds via the issuance of digital tokens in Malaysia. An issuer may raise funds up to RM100 million from retail, sophisticated, as well as angel investors, subject to the investment limits provided in the SC’s Guidelines on Digital Assets.
Key regulation for IEO operators can be found in the
Guidelines on Digital Assets , in addition to other relevant regulations and guidelines.
Find out more about the list of registered Initial Exchange Offering (IEO) HERE.