Malaysia Softened Positions on Cryptocurrencies

Malaysia informs it has no plans on banning cryptocurrencies, unlike many of its regional counterparts. According to the country’s Second Finance Minister Johari Abdul Ghani, the reason is that such a ban would stifle innovation and creativity in the financial sector, particularly fintech.

“The government is fully aware of the need to strike a balance between public interest and integrity of the financial system,” he was quoted as saying this week.

As the minister informed, for the public interest the Malaysia’s monetary authority will be monitoring  digital currencies.

“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,” he said.

“However, similar to any financial and investment schemes, there is a need to have proper regulation and supervision to ensure any risk associated with such schemes are effectively contained,” he said.

Malaysia also look ways to create regulations for making digital transactions more transparent, which will allow the public to better access to information on the risks of cryptocurrency trading.

Financial innovation supported by technology, including cryptocurrencies and e-wallets should be part of the country’s “digitalisation roadmap”, he said.

“Financial innovation will not only enhance the productivity of economic activities 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.”