The Malaysian central bank, Financial institution Negara Malaysia (BNM), is expected to challenge a directive to regulate the use of digital currencies in the nation in early 2018. The central bank has been talking about and functioning on a proposed cryptocurrency regulation for some time now and this new growth is expected to be hailed by marketplace gamers.
According to BNM Governor Tan Sri Muhammad Ibrahim, the introduction of regulations for virtual currencies are supposed to prevent abusing the program for criminal and illegal activities and to retain the stability and integrity of the fiscal program.
“The advent of digital currencies as some have forecast will mark the commencing of a new period in the fiscal sector. As authorities, we simply cannot be oblivious to these developments….The banking sector desires to undertake the latest and most highly developed systems to increase its threat management framework.”
Possible impact(s) of the new regulations on the cryptocurrency sector
Below the regulations, individuals who convert their virtual currencies into fiat currencies will be deemed as reporting institutions and will be subjected to Malaysia’s Anti-Money Laundering, Anti-Terrorism Funding and Proceeds of Unlawful Actions Act of 2001. This means that cryptocurrency transactions will be subjected to legal guidelines comparable to people imposed on banking institutions.
Having said that, the implementation of regulations as a guidebook for digital currencies would not automatically suggest that the virtual tokens are now accepted as lawful tender in the nation. It is just seen as an indication that the central bank is keeping an open mind on the new wave of innovative systems being launched in the fiscal sector.
The expected introduction of digital forex regulations also exhibits that an intriguing foreseeable future is awaiting the virtual currencies like Bitcoin, Ethereum and Litecoin in Malaysia. It continues to be to be seen, nonetheless, if this will lead to the mainstream adoption of cryptocurrencies in the nation.