Malaysian MP ”Concerned About Threat” from Cryptocurrencies

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Lim Guan Eng, the finance minister of Malaysia, has warned individuals and companies planning to issue new cryptocurrencies with a stern: “don’t do it”. Addressing parliament on Nov. 26, Guan Eng advised to wait for legal guidance from Bank Negara Malaysia, the southeast Asian country’s central bank

Wait for Central Bank Guidance

“Don’t do it without Bank Negara’s guidelines or directive on the matter to avoid doing something wrong and against the law,” Guan told parliament on Monday. He was responding to a legislator who wanted to know what government was doing to prevent cryptocurrencies from allegedly causing “problems” for the local fiat unit, the ringgit.

Malaysian MP ”Concerned About Threat” from Cryptocurrencies to Government Money

One of the more common ways to create a new virtual currency is through fund-raising models such Initial Coin Offerings (ICOs). It might be that the Malaysia finance minister was speaking with that in mind, especially considering how a number of ICOs throughout the world have shipwrecked, turning out to be nothing more than just elaborate scams.

“We need to be cautious as Bank Negara is the authority that handles and manages all forms of new currency technology,” online newspaper The Star Online quoted Guan as saying. The finance minister said government was open to emerging forms of money such as virtual currency but only if they adhere to the law.

Bitcoin and other digital currencies are not recognized as legal tender in Malaysia, but they aren’t banned either. That means individuals or companies trading cryptocurrency are free to do so, but are not protected by law. However, under the legislation governing money laundering, all crypto asset exchanges operating in Malaysia are subject to its reporting obligations.

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