Malaysian Finance Ministry Says Domestic Crypto Adoption is Still Relatively Low

The widespread adoption of cryptocurrencies recorded in various parts of the world does not seem to be the case in Malaysia as the country’s finance ministry revealed that its domestic crypto adoption is still relatively low in the region. 

The Malaysian Ministry of Finance made this known in its Economic Outlook 2020 report released today while acknowledging that key economic players in the country, including multinational firms, have taken significant steps toward the adoption of digital currencies.

Currently, the step toward crypto adoption by these companies is yet to record any significant impact. However, the ministry suggested that digital currencies in the country may well turn out to become relevant or die a natural death in the future based on its usage. 

Establishing a Secured Financial System

Notably, the country’s financial regulators, including the Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SCM) have joined forces to set up a secured platform to shield any illicit activity from penetrating its financial system.  

Both institutions have issued a strict warning to the general public to desist from illicit activities. 

As part of its effort to promote a safer financial system, the BNM has gone a step further to amend its Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) regulations last year February, which saw the country’s apex bank set out the AML and CFT requirements for digital asset service providers in Malaysia.  

In the same vein, the financial regulators launched the Capital Markets and Services Order in January, to effectively regulate crypto-related firms and establish guidelines to help in the classification of cryptocurrencies as either commodities or securities. 

Also, the SCM amended the regulations for Recognized Market, thus explicitly stating the requirements for crypto exchanges in the country, and has proposed a formal guideline for ICO in the near future. 

In May, the newly established crypto guidelines helped in the registration of three exchanges, such as Tokenize Technology (M) Sdn Bhd, Luno Malaysia Sdn Bhd, and SINEGY Technologies (M) Sdn Bhd, the report states. 

In June, Coinfomania reported that the SCM stated that it only recognizes the three exchanges which got regulatory approval while urging other operators in the country to obtain regulatory approval or risk being shut down.