The Bank Negara Malaysia (BNM), the country’s central banking institution, has convened meetings between its official and local cryptocurrency experts, but has not issued a statement to the public regarding its policies.
BNM has no current plans at this time to regulate cryptocurrency operations, but has noted there will be an announcement regarding the regulation of cryptocurrency in the country by early 2018.
of Cryptocurrency in Malaysia
Cryptocurrency is not a form of legal tender in Malaysia. While buying and selling cryptocurrencies in Malaysia is allowed, proper KYC documentation needs to be acquired in order to perform cryptocurrency transactions.
The Malaysian government has also decided to pass a law in 2018 designating those organizations converting cryptocurrency to conventional currency as “reporting agencies” in order to prevent their use as a gateway for money laundering and terror funding activities.
of ICOs in Malaysia
The Malaysian Securities Commission had recently issued a statement warning Malaysian investors of the risks involved with ICOs. The statement says that ICOs are unregulated entities and as such may be subject to foreign laws and regulations.
The commission implores people to be careful with their investments, and that they should carefully analyze the pros and cons before spending money on cryptocurrency. It also urges investors to keep in mind other investment possibilities other than cryptocurrencies.
Markets in Malaysia
While adoption of cryptocurrency in Malaysia is quite low when compared to its neighbouring countries, the number of people using it is rapidly increasing. Currently, the purchase and sale of cryptocurrency in the country requires proper documentation of both the buyer and the seller.
The upcoming regulations of the Malaysian central bank BNM will have a long lasting impact on the use of cryptocurrency in the country. It remains to be seen if the proposed regulations will boost the use of cryptocurrency in the country or stall its progress.
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