Malaysia’s Finance Minister, Lim Guan Eng, recently announced that the government is set to implement its new regulatory policy regarding cryptocurrencies and ICOs in early 2019.
Speaking at the FinTech Conference 2018, the minister stated that the country’s Securities Commission (SC) has outlined a timeframe in which they’ll implement the new regulations for cryptocurrencies and ICOs.
The minister went on to stress the importance of protecting investors with the implementation of a solid regulatory policy:
“While some parties might still be sceptical of this space, there can be no doubt that we need appropriate regulations to be put in place and enforced to safeguard the interest of investors,”
Lim’s words are sending a clear message – trust in the cryptocurrency and ICO sector will be attained following the enforcement of clear regulations.
Hopefully this will entice more government officials to be open-minded about the use of new financial technologies, where previously MPs had voiced concerns over the anonymous nature of cryptos.
Progress So Far
Since late 2017, the Malaysian government have been planning their regulatory policy surrounding the domestic cryptocurrency sector. With the country’s SC warning against ICO investments back in September 2017, huge signs of progress are being shown to date.
In the meantime, the country has looked to closely monitor and control the industry. The Finance Minister suggested that companies wanting to issue cryptos must first consult the country’s central bank (Bank Negara Malaysia):
“I advise all parties wishing to introduce Bitcoin (style) cryptocurrency to refer first to Bank Negara Malaysia as it is the authority that will issue the decision on financial mechanism,”
Earlier this year it was reported that Bank Negara Malaysia had published its Anti-Money Laundering and Counter Financing of Terrorism Policy for cryptocurrencies, in an effort to expose potential risks of digital assets and improve transparency of cryptocurrency activity in the country.
Although Malaysia may be making positive steps forward in terms of regulation, the idea of consulting a central bank to use decentralised currencies will be a concern to many crypto enthusiasts; decentralisation being a core fundamental property of the nascent asset class. Despite this, the country is showing efforts to pioneer a new era of finance. Hopefully this will have a long term beneficial impact on the economy, in turn boosting adoption of digital currencies.
Leading The Way
Malaysia is showing huge signs of progress in adopting new financial technologies, as well as embracing blockchain technology. In November, the country’s Education Ministry set up a NEM based university degree verification system to help eliminate fake degrees.
Do you think Malaysia’s policy implementation will provide a boost for the crypto industry?
Let us know in the comments 🙂