The Malaysian central bank, Bank Negara Malaysia, is predicted to release a directive to modify the usage of cryptocurrencies within the Malaysia during next year. The central bank has been discussing and operating on a proposed digital currency law for a while now and this new improvement is predicted to be hailed by business players. In step with Bank Negara Malaysia Governor Tan Sri Muhammad Ibrahim, the advent of regulations for digital currencies are supposed to prevent abusing the system for criminal and unlawful activities and to keep the steadiness and integrity of the economic system.
Tan Sri Muhammad Ibrahim said:
“The advent of digital currencies as a few have forecast will mark the start of a new era within the economic area. As government, we cannot be oblivious to those tendencies. The banking sector needs to adopt the modern and most advanced technologies to enhance its danger control framework.”
Beneath the policies, those who convert their digital currencies into fiat currencies might be taken into consideration as reporting institutions and will be subjected to Malaysia’s Anti-money Laundering, Anti-Terrorism Financing and Proceeds of illegal activities Act of 2001. Because of this, digital currency transactions will be subjected to laws just like those imposed on banks.
All in all, the implementation of policies as a manual for cryptocurrencies would not automatically suggest that the digital tokens are already common as legal way of payment in the Malaysia. It is seen as an indication that the central bank is maintaining open thoughts on the new wave of progressive technology being added within the economic area.
The predicted creation of digital currency guidelines also indicates that an exciting future is awaiting the digital currencies like Bitcoin, Ethereum and Litecoin in Malaysia. It stays to be seen if this will cause the mainstream adoption of digital currencies in the Malaysia.