Malaysia to Accept New Cryptocurrency Regulation

Malaysia to Accept New Cryptocurrency Regulation

in News
Bank Negara Malaysia (the central bank of Malaysia) has published an Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies. Under the new policy issued by Bank Negara Malaysia (BNM), digital currency exchanges will be subject to the Anti-Money-Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act of 2001. Exchanges will be required to verify their customer's identity, monitor trades and report suspicious activity to regulators. The policy document also states that “any person offering services to exchange digital currencies either from or to fiat money, or from or to another digital currency is subject to obligations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001″.
Cryptocurrency exchanges “are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with customer and when the reporting institutions have any suspicion of money laundering or terrorism financing.”
The policy aims to ensure that these effective measures prevent the wild spread money laundering and terrorist financing risks that are “feared” by governments in cryptocurrency trade. In the document, all cryptocurrency exchanges are required to collect accurate customer information, after establishing a business contract. This will also apply in case of suspicion regarding money laundering or the financing of terrorist activities. The regulation is however not as strict as many had expected and shows that the central bank is keeping an open mind in the innovative technologies being introduced in the financial sector. Also, it is a clear indication that virtual currencies like Bitcoin, Ethereum and Litecoin are increasingly showing signs of a bright future in the country.  

Do you think that governments will be successful in attempting to increase the “transparency” of the cryptocurrency economy? Share your thoughts in the comments section below.

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