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New Malaysian Cryptocurrency Regulation Come Into Effect

New Malaysian Cryptocurrency Legislation Come Into Effect

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The newest policy principles claim that “cultivating greater transparency in the use of electronic monies serves to protect the integrity of the monetary system and strengthen incentives to prevent their abuse for prohibited activities”
As such, the bank stated that “digital money businesses are not covered by prudential and market conduct standards […] related to financial institutions controlled by” Bank Negara Malaysia.
Last week, Malaysia’s fresh Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) policy recommendations expressly addressing cryptocurrencies came to effect. The new regulations induce Malaysian digital money exchanges to support KYC adherence, including the selection of ID documentation.

Malaysian Cryptocurrency Exchanges to Employ KYC Requirements

Also See: Two Indian Token Marketplaces Currency Trading as a Result of Chemical Pressure

Would you feel that governments will be successful in attempting to increase the  “transparency” of the cryptocurrency economy? Share your thoughts in the comments section below!

The legislation came into effect on February 27th, with Bank Negara Malaysia saying it “[took] into account comments received through the public consultation period about the exposure draft released 14 December 2017.” The bank added the comments it received “mostly focused on the responsibilities imposed on electronic money exchangers, including businesses providing intermediary services involving cryptocurrencies.”

New Malaysian Cryptocurrency Regulation Come Into EffectBank Negara Malaysia’s stated policy goal is to “ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of electronic monies,” along with “increas[ing] the transparency of electronic money activities in Malaysia.”
The regulations insist that Malaysian digital money trades collect the entire title, address, and date of birth of all customers, along with ID documentation. The policy document also claims that “any person offering services to swap digital monies either from or to fiat money, or to another digital money is subject to duties under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001″.

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New Malaysian Cryptocurrency Regulation Come Into EffectThe policy document says that Malaysian cryptocurrency trades “are expected to conduct client due diligence about all customers as well as the persons running the transaction when the reporting institution establishes business relationship with client and when the reporting institutions have any suspicion of money laundering or terrorism financing.”