Malaysian Official States That The Government Has No Plans Of Banning Cryptocurrencies

Datuk Seri Johari Abdul Ghani, the Deputy finance minister of Malaysia imparted much relief amongst the crypto aficionados after announcing that his government does not have any plan of imposing a ban on cryptocurrencies. Johari stated in an interview held by The Malaysian reserve that a ban would halt all innovation and development in the fields of fintech and that was the last thing the government desired.

He pointed out that:

“It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public.”

Johari further added that the innovation in the field of finance “will not only enhance productivity of economic activities, but also make financial intermediation more seamless.”

Bitcoin had a record-breaking bull phase in 2017 which helped it in reaching close to $20000 figures. The subsequent price surge of other altcoins has helped in increasing the popularity of the cryptocurrency sector. One year back, virtual currencies were discussed only amongst the tech nerds. But it has come a long way in becoming a conversation starter lately. From school assemblies to after party scenes, everyone is now interested in knowing if you are a cryptocurrency owner.  In spite of a bevy of its positivity’s, just a handful of negative points arising out of its unregulated nature is causing the financial regulators and government bodies worldwide in taking up stern steps for dealing with it.

Also Read: A Survey Reveals One Third Of South Korean Workers Have Invested In Cryptcurrencies

Countries such as South Korea has recently come ahead with stringent regulations for protecting the investors and preventing usage of cryptos for fuelling illegal activities such as money laundering and terrorism funding. The regulations announced by South Korea will ensure greater KYC compliance by putting an end to anonymous accounts which often served as the plying field of malicious activities.

Johari however agreed to the fact that the government of Malaysia was, “aware of the need to strike a balance between public interest and integrity of the financial system”, and would take up a balanced and cautious stance to ensure investor protection without bottlenecking the thoroughbred innovation potential of cryptos. However, “… similar to any financial and investment schemes, there is a need to have proper regulation and supervision to ensure any risk associated with such schemes are effectively contained,” he added.

The Bank Negara Malaysia (BNM) has not started with cryptocurrency regulation as of yet. But the development of a proper framework is slowly taking shape which will cater to the boiling issues of fraud, money laundering and terrorism funding. Johari also added that once the crypto regulation takes shape, national exchanges dealing in the digital token shall have to apply for KYC registration and follow all due diligence procedures. They will also be bound to bring suspicious activities under the notice of the authorised body. All relevant institutions and the public shall be supplied with the requisite information. This will help by ushering in greater transparency in the crypto market as investors gain greater understanding of the risk factors and shall take much more informed decisions. It will also be easier for authorities to maintain their regulative stand over the dynamic crypto market. Once such regulations get implemented, the Malaysian central bank might even recognize the regulated crypto trading platforms.

Also Read: Venezuela Reveals Details Of Trading, Mining and Launch of It’s National Cryptocurrency

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