Malaysian government has started considering the use of Cryptocurrency regulations, as a way to improve the national financial structure. This comes after a meeting between Malaysia Prime Minister Datuk Seri Anwar Ibrahim, officials from Abu Dhabi, and the Binance CEO Chanpgeng “CZ” Zhao as stated in the NewSrait Times.
Prime Minister Advocates for Modern Crypto Policies
To tackle this situation Anwar Ibrahim, the Prime Minister of Malaysia said that the country needs to come up with policies that support the use of cryptocurrency as the growth in financial technology is across the world. Anwar spoke this when he was recoding his impression after a three-day working visit to Abu Dhabi about the need for Malaysia to shift from its conventional financial structures.
“This is a shift that needs us to be active. Malaysia cannot afford to go slow,” Anwar said, about talks with the Abu Dhabi leadership and CZ. He referred to this change as “ completely incomprehensible from the prior approach.”
The Prime Minister further said that there is willingness from the policymakers in the UAE to engage Malaysia in the formulation of cryptocurrency policy. This he said was necessary in a bid to ensure that there were broad consultations that would inform the nation’s stance in the context of digital finance.
Comprehensive Studies Required for Policy Implementation
The proposed cryptocurrency regulation in Malaysia is likely to be a complicated process, which will involve several study works that will be conducted by various authorities such as the Treasury, the Securities Commission, and the Central Bank of Malaysia. The objective should be to discuss issues regarding the application of the said framework.
“Concerns that are always associated with new ideas must be dealt with appropriately, training, skills acquisition, and participation in business,” said Anwar. He said that training of personnel and development of partnerships with the actors in the sector would be critical in guaranteeing the desired outcome of any regulatory approach.
Recent Crackdown on Unregistered Crypto Platforms
The recent action taken by Malaysia is to shift towards cryptocurrency regulation after recent crackdowns from the Securities Commission on unregistered platforms. Specifically, on December 27, 2024, the regulator compelled the primary crypto exchange Bybit to stop its operations due to its failure to register as a digital asset exchange.
Further, on December 23, Atomic Wallet was included by the Securities Commission in the investor alert list. Other platforms on the list are Paxful, Kucoin, and MEXC which are alleged to have provided their services in Malaysia without legal approval. These measures show why there is a need for a well-regulated environment for dealing in blockchain-based currencies such as bitcoins to prevent investors from falling victim to such malicious activities.
Potential Collaboration with UAE to Shape Policy
Anwar also shared his opinion that the UAE’s experience in the development of digital finance will be useful for Malaysia. He pointed out that the cooperation with UAE could assist Malaysia in adopting efficient cryptocurrency policies that may suit its economic and financial system.
The steps for improving Malaysia’s financial industry discussed by the Prime Minister coincide with the major objectives of the Malaysian government to support innovation and develop a stable financial system. To fill these shortcomings, Malaysia aims to strengthen cooperation with international bodies and achieve the advanced status of a progressive participant in the global digital finance system.
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