Malaysia launches cryptocurrency exchange regulations. The central bank of Malaysia mentions that the rules will be applicable for all activities that are performed by cryptocurrency exchanges that offer fiat-to-crypto and crypto-to-crypto trading services.
28 February, AtoZForex – New cryptocurrency regulatory changes for the digital currency exchanges have been presented by the Malaysian central bank. In fact, the new requirements have already been put into effect.
Malaysia Launches Cryptocurrency Exchange Regulations
Bank Negara Malaysia has announced that its “Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies” is now the official law in the country. The official document from the central bank of Malaysia mentions that the rules will be applicable for all activities that are performed by cryptocurrency exchanges that offer fiat-to-crypto and crypto-to-crypto trading services.
The move follows a long period of public consultation in regards to this issue. Back in December 2017, the central bank officials have presented a draft of rules. That time, the central bank has 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 has been open for the public consultation.
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.
Cryptocurrencies are not legal tender in Malaysia
The policy document from Bank Negara Malaysia states:
“Reporting institutions are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with customer and when the reporting institutions have any suspicion of money laundering or terrorism financing.”
The officials will need to acquire the following data about the customers: the customer’s full name, their address and date of birth, and the information about the purpose of the transaction.
Nevertheless, the central bank has highlighted that the release of these rules does not represent any kind of endorsement in regards to the cryptocurrencies. Moreover, this move does not imply that Malaysia is moving to consider cryptocurrencies a form of legal tender in Malaysia.
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