Regulatory measures in different countries always have an impact on cryptocurrencies these days. Up to this point, Malaysia has been pretty silent on that front. This situation is slowly changing, though, as Bank Negara is getting ready to publish its guidelines on Bitcoin and altcoins. For now, it appears the bank is leaning toward granting legal status for Bitcoin. This has not been officially confirmed, though it is certainly possible.
Bank Negara is Open-Minded
It is somewhat surprising to see a country’s central bank keeping an open mind toward cryptocurrencies these days. After all, a lot of financial institutions have proven somewhat shortsighted when it comes to Bitcoin and altcoins. At this rate, it is highly likely most countries will never properly regulate cryptocurrency. That in itself is pretty surprising, as this nascent financial industry continues to make a lot of headway these days.
Moreover, the Malaysian Securities Commission issued a strong warning not to invest in cryptocurrencies just two weeks ago. It is evident such warnings are slowly becoming the new normal, as we have seen a dozen such warnings over the past few years. Such pronouncements are not linked to specific regions, considering that cryptocurrencies are the only global payment and investment solutions with any promise right now. People all over the world are paying attention to Bitcoin, which is of great concern to financial regulators.
In Malaysia, the current goal is to come up with a regulatory framework that will address money laundering and terrorist financing. It does not appear Malaysia will ban cryptocurrencies or go after exchanges in the same way as the Chinese government has been doing of late. Do keep in mind nothing has been set in stone just yet, even though the new regulations are expected to be ready before the end of this year. That is a very ambitious timeline, to say the least.
More specifically, it appears Bank Negara prefers a form of regulation that will not stifle innovation whatsoever. The country is known for its formidable growth and other economic accomplishments. Ensuring that similar strength applies to cryptocurrency will not be an easy feat, but it is certainly possible we will see some less cumbersome regulation moving forward. It remains unclear exactly what one can expect, though, but for now, things are looking somewhat promising.
To that end, a meeting will take place in November of this year. During this meeting, it will be decided how the economy should be positioned in regards to cryptocurrencies. It appears this will also be the final meeting among regulators to determine the future of Bitcoin and altcoins in Malaysia moving forward. Financial institutions in the country are advised to promote new growth areas moving forward, but it remains to be seen what bearing this will have on cryptocurrencies.
It is certainly possible Malaysia might effectively legalize cryptocurrencies moving forward. There is no reason not to think that will be the case, although this new regulation will certainly not give cryptocurrencies and service providers carte blanche by any means. Malaysia will be an interesting region to keep an eye on moving forward; that much is evident. If it plays its cards right, the nation may become one of the next major cryptocurrency hubs in the next few years.