#Malaysia to Regulate Cryptocurrencies through Legislation#

Malaysian Prime Minister Anwar Ibrahim recently stated that Malaysia is considering introducing cryptocurrency and blockchain legislation to regulate the industry and align with other jurisdictions. This move indicates that the Malaysian government is actively exploring the digital asset space and seeking to establish a secure, transparent, and sustainable cryptocurrency ecosystem. Anwar emphasized that the regulation aims to protect the interests of the people, prevent loopholes, and ensure that Malaysia does not fall behind in digital economic development. He has engaged with the Abu Dhabi government and cryptocurrency exchanges like Binance, and has expressed a preference for accelerating the legislative process. Malaysia has previously explored digital technologies, including a feasibility study on cross-border central bank digital currency payments with the Bank for International Settlements and other central banks, as well as the creation of a national blockchain infrastructure. However, the country has also taken steps to crack down on illegal cryptocurrency operations, such as ordering Binance to cease operations in the country in 2021 and Huobi Global to halt operations in 2023. The proposed Malaysian cryptocurrency and blockchain legislation would provide a clear regulatory framework for the industry, offering greater certainty for investors and businesses, and thereby fostering the healthy development of digital assets.