Many governments and also financial regulators all over the world are looking for ways to regulate cryptocurrencies. It’s now however very easy because there is no specific way to control Bitcoin and others. This is because the issuance, flow of money or even the creation of the currencies are not controlled by governments.
Malaysia is, however, trying to come up with a way to control the currency from next year. The process of regulating cryptocurrencies will be made through the Bank Negara Malaysia. The bank has been very active in discussing the possibility of regulating Bitcoin and other cryptocurrencies. The Malaysian bank was expected to introduce the regulation this year but the time has been pushed to 2018.
A representative from Bank Negara Malaysia has said that the regulation will be affected very soon. It looks like people who convert cryptocurrencies into fiat money will be subject to the country’s Anti-money laundering. This also falls under Anti-terrorism financing and proceeds of unlawful activities Act of 2001.
All those using the digital currencies will have to follow the rules affecting financial institutions. This is aimed at preventing criminals from misusing cryptocurrencies as well as prevent people from doing unlawful activities that may surround Bitcoin and other currencies. More to that regulating cryptocurrencies is meant to regulate the integrity of Malaysia’s financial system.
Bank Negara Malaysia believes cryptocurrencies cannot be avoided. They see the currencies in a positive way and believe they come with good innovation to the financial sector. The bank also believes that ignoring the innovation and technology around cryptocurrencies is like digging an own grave. Even though we are not sure whether the regulations will be pleasing what we know is that the government is very open about cryptocurrencies which are good.
Financing of terrorism and illegal activities
Since the launch of Cryptocurrencies, there is no evidence of them financing terrorism. There has been over 346 suspicious transactions in 2017 but neither link to cryptocurrencies. As far as Bitcoin is concerned it too transparent when it comes to financing illegal activities.
It will be very interesting to see how Malaysia and other countries regulate digital currencies because it’s almost impossible to regulate. The only possible thing to regulate are the companies that facilitate the exchange program. If this regulation applies to the exchange companies, then consumers will remain safe.