Malaysian Government Still Undecided Over Whether Cryptocurrencies Are Legal Or Not
Malaysia has been struggling to formulate a stance over cryptocurrencies. Malaysia’s Federal Territories Minister said this week that the government is still indecisive about whether cryptocurrencies are legal or not.
Last year, the finance minister of Malaysia warned companies to not to issue new tokens, while the central bank ponders over the legality and the regulations for them. According to local media, Khalid Abdul Samad, Malaysia’s Federal Territories Minister, stated that cryptocurrency is “neither legal nor illegal.” He added that the government is still considering the matter, the publication quoted him:
“People have asked me if these currencies are legal or illegal. At the moment, the answer is neither legal nor illegal as the situation is still unclear.”
Also involved in the invention of the Pakatan Harapancoin, a token invented to raise political funding for Malaysia’s ruling party, in preparation for the 2019 general elections. However, the country’s central bank, Bank Negara, still needs to approve the initiative. Samad added that despite being a proponent of crypto, he could not sway the government either way.
“Yes, I was involved in the launch of harapan coin. However, I was not appointed as finance minister. Instead, I became federal territories minister. As the matter is not under my jurisdiction, I cannot push too much.”
Cryptocurrencies like bitcoin haven’t received recognition as a legal tender in the country. In November last year, Lim Guan Eng, the Finance Minister, gave a warning for people and companies not to issue new cryptocurrencies until the central bank issues legal advice, saying:
“Don’t do it without Bank Negara’s guidelines or directive on the matter to avoid doing something wrong and against the law.”
He added that the government is willing to accept new forms of virtual money, but only if they adhere to the law. Although many believe that the functioning of the national currency, the ringgit would be affected if and when any crypto will be accepted.
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