Customer ID Is Now A Requirement In Malaysia For Crypto Exchange Purchases
This Has Already Been Set To Motion
The central bank has been involved in the generation of new policies for the Cryptocurrency exchanges in Malaysia. Therefore, these policies have been put into motion.
On Tuesday, Bank Negara Malaysia made an announcement that its “Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies” had become the land law. As it has been published in the policy documentation, the various rules of the policy will be carried out by the Cryptocurrency exchanges which offer both the crypto-to-crypto services and also the fiat-to-crypto services.
The move follows various months of public consultation about the issue. In December last year, the central bank officials were involved in publishing draft rules which were opened up for the input by the various industry stakeholders. Officials then began publicly speaking in regard to the framework from November. This is as reported at that time.
The policy, at its heart, requires the various exchanges to uphold diligence in checking and collection of information in regard to customers who do not use their trading platforms. This is according to a text released on Tuesday.
Statement of the policy document;
“Reporting institutions are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with the customer and when the reporting institutions have any suspicion of money laundering or terrorist financing.”
Various data pieces which are required are the full name of the customer, the address and also the date of birth. Additionally, information in regard to the transaction purposes is also a requirement.
However, the central bank was involved in stressing that the release on Tuesday does not represent any endorsement from them. Additionally, it doesn’t mean that the various officials will move to consider cryptocurrencies as a form of a legal tender in Malaysia.
The central bank made this statement;
“Members of the public are advised to carefully evaluate the risks associated with dealings in digital currencies.”