The Central Bank of Malaysia, Bank Negara Malaysia (BNM), officially flagged a Malaysian ICO ‘Coinzer’ on March 11, 2018, for using their logo and Jata Negara, the Malaysian Coat of Arms, on their proposed token. The BNM has cautioned customer and asked them to disassociate with the coin.
Coinzer Exploits BNM Logo, Coat of Arms, and Malaysia Symbol
The ICO used the official logos on its token white paper, website, and token design which according to BNM, is unaccredited as the bank has no links with the digital token.
Moreover, it can mislead domestic investors into believing that the central bank of Malaysia backs the token.
The Central Bank of Malaysia took the opportunity to inform its citizens that cryptocurrencies are not a legal tender in the country and cautioned them on reviewing all risks involved before making any trades or purchases.
The BNM press release also displayed the image used by Coinzer, showing that the BNM logo and Coat of Arms is not the only thing Coinzer exploited, but also the 14-point Star of Malaysia and Malaysia’s country code is used.
According to BNM, Coinzer has crossed the limit to promote its digital token sale. The cautionary note stated:
“BNM would like to state that it does not authorize or endorse the cryptocurrency platform called Coinzer. The use of BNM logo and Jata Negara on the proposed physical coin design, white paper, and website https://www.coinzer.co are unauthorized.”
Coinzer Responds to BNM Allegations
In response to the bank’s statement, the alleged Coinzer issued an explanatory statement on its website. The report explains that the digital token was only a conceptual design and the company never intended to go ahead with it.
The press release also highlighted the fact that Coinzer is working in harmony with the Malaysian government.
Specifically, the press release read:
“Regulators in many countries especially Malaysia are aware that this new technology and financial innovation will not only enhance the productivity of economic activities, but also make financial intermediation more seamless.”
The BNM’s cautionary statement also shows that Malaysian authorities are expediting their efforts to supervise ICOs. At the start of 2018 Securities Commission Malaysia (SC) and BNM, jointly issued statements indicating that the duo would closely monitor ICO projects.
The joint statement read, “Both authorities will continue to monitor these developments, and will not hesitate to take action against any person conducting illegal or unauthorized activities.”
That being said, the head of BNM Muhammad bin Ibrahim, said that the bank does not intend to ban innovation that could be beneficial to the public.
The Malaysian authorities have had a balanced and fair tone when it comes to cryptocurrencies. The country wants to embrace the technology but won’t accept any wrongdoings that put its citizen’s money to risk.