Recently, the Bank Negara Malaysia (BNM), Malaysia’s central bank, has issued outlined digital currency regulatory guidelines for people and businesses dwelling in the region. The new policies will fall under Malaysia’s anti-money laundering and anti-terrorism funding act of 2001. If the plans are officially approved, cryptocurrency platforms must supply digital asset volume statistics, categorize all clientele, and also keep an eye on transactions going in and out of the exchange.

The regulations will apply to all trading platforms that deals with cryptocurrencies, and any person can also be considered an “exchange” if they sell digital assets. For larger businesses, there will be “transparency obligations” where trading platforms will be required to provide data to the Bank Negara Malaysia’s reporting entity.

“A Digital Currency Exchange must also declare its details to the Bank as a reporting institution,” explains the central bank.

Crypto-currencies like Bitcoin are not authorized Tender in Malaysia

Furthermore, exchanges need to comply Know-Your-Customer (KYC) requirements when enrolling clients. The objective behind verifying users’ identity intends to present sufficient measures against money laundering, and terrorist finances.

“The public is advised that digital currencies aren’t legal tender in Malaysia,” the bank’s drafted the statement. “Members are advised to thoroughly assess the risks associated with transactions in digital currencies — Including risks arising from high volatility in costs and vulnerabilities into cyber-attack that may result in significant losses before dealing with Digital Currency Exchange.

“Users of virtual currencies will similarly not be dealt with under constituted disputed resolution which exists for controlled financial institutions in case of any losses or dispute.

Malaysian Society and Businesses May Give Written Feedback on the Proposed Laws

The recommended guidelines are considered the first initial steps towards creating Digital assets clear in the nation. BNM states they’ll be tracking Bitcoin along with other crypto-currencies to estimate the risks retail investors confront. Further, the central bank is welcoming written feedback opinions with respect to the drafted laws, and answers are due by 14th January 2018.


Author's Bio: 

Ricky Makan is a venture capitalist and Crypto Enthusiast best known for pioneering the market for Digital Marketing. He is a Co-founder of Unkrypted, a platform which provides the latest news and information that helps understand everything about the ever-evolving world of digital currencies. He is been fascinated by Blockchain technology since the first time he heard about it in 2013