As cryptocurrencies continue to grow and gain popularity across the globe, the government said they had no plans to regulate it, given their decentralised nature.
Deputy Minister in the Prime Minister’s Department (Economy) Datuk Eddin Syazlee Shith said this in the Dewan Rakyat yesterday (13 December), adding that it is futile for the government to draft new laws to control cryptocurrency trades.
“The nature of the currency is that it is decentralised, so it is difficult for us to control it.” Eddin Syazlee said.
In addition, Eddin said the government has through the Securities Commission classified it as a form of security.
He said this is to give guidance to investors to understand the nature of their cryptocurrency investments.
“To make specific laws to regulate cryptocurrencies is difficult, given its nature.” Eddin Syazlee said.
The deputy minister said in response to Rasah MP Cha Kee Chin when he asked about the government’s stance on this new form of virtual currency.
Cha also asked whether the government is ready to regulate these new currencies to prevent Malaysians from suffering further losses.
Economists said that there are more than 1,000 cryptocurrency companies operating across the globe, with active trading reaching billions in volume. However, its legality continues to be a question to the Malaysian authorities.
As of now, cryptocurrency is not recognised as a legal tender in Malaysia as one of the key features of cryptocurrency is that it is not issued by the central bank of any nation.
In 2020, the government had reportedly said that cryptocurrencies would not be banned.
“It is not the intention of the authorities to ban or put a stop to any innovation that is perceived to be beneficial to the public.” the Finance Ministry had said.
However, the government advises Malaysians who are seeking to invest in cryptocurrencies to enlist with those recognised by the Securities Commission (SC).
Additionally, those seeking to establish a digital asset exchange to trade bitcoin and other cryptocurrencies in Malaysia must comply with SC regulations that require exchanges to have robust measures in place to protect users and their assets.