Malaysia Issues Draft of Cryptocurrency exchanges regulation

While cryptocurrency trading does not have any legal ground in Malaysia, Malaysia issues draft of cryptocurrency exchanges regulation in a bid to create more transparency in the digital currency markets.

15 December, AtoZForex This Thursday, the central bank of Malaysia has stated that it had issued a draft of the regulations of cryptocurrency businesses. However, the officials have noted that the digital currencies still are still not legal tender in the country.

Malaysia Issues Draft of Cryptocurrency exchanges regulation

As Malaysia proposes draft from the regulatory guidelines, it stated that digital currency exchange businesses will be designated as “reporting institutions” under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). Moreover, the draft for the cryptocurrency exchange companies is open for the public consultation.

According to the official statement from the Bank Negara Malaysia (BNM):

“The proposed policy sets out the legal obligations, requirements and standards that digital currency exchangers, which will be defined under the First Schedule of the AMLA, must carry out as reporting institutions.”

Yet, the draft regulations do not serve as an authorization or endorsement of any firms that are involved in the provision of cryptocurrency exchange services, as per the bank’s statement. The authority has added:

“The public is reminded that digital currencies are not legal tender in Malaysia.”

Asian Markets Show increased Crypto Interest

The Governor of Malaysian Central Bank, Muhammad Ibrahim, last month has stated that the institution had commenced work on the regulatory structure for cryptocurrencies. The key purpose behind the project is to secure the country against money-laundering and terrorism financing.

In addition, the Bank Negara Malaysia has stated that the guidelines come as the first step toward making the digital currency activities more transparent across the country.

As a matter of fact, cryptocurrencies grow in popularity across Asia, with only South Korean cryptocurrency holders totaling at 1 million, according to some sources. The craze has reached critical levels, where many retail investors are leaving their jobs to trade full time on cryptocurrency markets. Even the prospect of losing the funds do not scare the investors, which causes big worries among government representatives.

This Wednesday, South Korean authorities have held an emergency meeting in regards to the cryptocurrency regulation across the country. The South Korean government stated it will consider taxing capital gains from trading of cryptocurrencies. Moreover, it will also ban minors from opening accounts via exchanges.

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