Instead of following in the footsteps of many of its regional counterparts, Malaysia is not planning on implementing a ban on cryptocurrency trading, and instead has sparked a growing interest in this world.
The country’s Second Finance Minister, Johari Abdul Ghani, has said that this decision is because a ban would actually reduce innovation and creativity in the financial sector. He said;
“The government is fully aware of the need to strike a balance between public interest and integrity of the financial system.”
In the public interest, it has been said that they will closely be monitoring digital currencies, with Johari adding;
“It is not the intention of the authorities to ban or put a stop to any innovation that is perceived to be beneficial to the public…However, similar to any financial and investment schemes, there is a need to have a proper regulation and supervision to ensure any risk associated with such schemes are effectively contained.”
The central bank does not currently regulate digital currencies; however, it has been suggested that they will ensure that traders are complying with existing monetary requirements for customer due diligence. On top of this, they are looking to create regulations that make the activities surrounding digital currency activities more transparent, which allow the public to access the information surrounding the risks of cryptocurrency trading.
He has said that the financial innovation that is supported by technology, which includes cryptocurrencies and e-wallets should also be part of the country’s digitalisation roadmap; saying
“Financial innovation will not only enhance the productivity of economic activity but also make financial intermediation more seamless…This is particularly relevant to recent innovation like Bitcoin, which remains unregulated globally and not battle-tested against shocks, unlike more conventional mediums of exchange.”