Bitcoin Forum

Just recently, the Bank Negara Malaysia (BNM), the country’s central bank, has issued drafted digital currency regulatory guidelines for citizens and businesses residing in the region. The new regulations will fall under the country’s anti-money laundering and anti-terrorism financing act of 2001. If the guidelines are approved, cryptocurrency trading platforms must provide digital asset trade volume statistics, identify all customers, and also monitor transactions going in and out of the exchange.

The central bank of Malaysia, BNM, has issued a draft of digital currency exchange regulations for public consultation. The laws will apply to all trading platforms that deal with cryptocurrencies, and any one individual can also be considered an “exchange” if they sell digital assets. For larger operations, there will be “transparency obligations” where trading platforms will be required to provide data to the BNM’s reporting entity.   

“A digital currency exchanger must also declare its details to the Bank as a reporting institution,” explains the central bank. "Failure to declare its details as reporting institutions or comply with the reporting obligations may subject the digital currency exchangers to the enforcement and non-compliance actions as provided under the AMLA as well as the potential termination or denial of use of financial services in Malaysia."

Read More Here >>> https://news.bitcoin.com/malaysia-issues-proposed-digital-currency-regulations-for-public-review/

Why are certain governments only concerned with regulating bitcoin because of terrorism and money laundering? is it that at least these governments should not worry about guaranteeing the rights of investors who use the exchange? regulating the exchange can help reduce the frequent cases of abuse that many exchange do with their clients. But it seems that regulators are not worried about ensuring that there is security in the exchange, that the exchanges respect their customers and do not steal money from their customers.

You have to realise that there's a dearth of fintech expertise in these public offices, never mind blockchain or crypto know-how. Malaysia has a unique political relationship, seen largely by the West as a moderate ally, within a secular state with Islam as its official religion, and yet still enjoying the trust and friendship of nations like North Korea and Iran. This has been instrumental to its economic policies for a very long time and is worth protecting.

So for them, if Bitcoin could threaten compliance to the network of banking and finance it enjoys, then that is a chief concern.

Also, they already are taking advise from at least one exchanger on how to go about regulating, and see, this is up for public review and feedback.

because they have to give a reason to regulate it ,thats why fighting terrorism and money laundering prevention
sound much better than we want your privacy removed ,also we as central bank want to fight any decentralised currency and fight any attempt to
break the grip of the central banks on your economies
they don't give a damn if the money is stolen,money is nothing for them,it can be printed any time in any quantity
its your private data and control over your financial life that is important

Good thing that Malaysia had chosen this path about regulating and embracing Bitcoin as a currency, mode of payment, and a trading asset. Unlike one of their Asian neighbor where they chose to ban Bitcoin as a mode of payments as they just plainly connected it to terrorism. What the Malaysian Central Bank has done is the opposite as they have really taken in consideration both sides in which they can also benefit. If we really want our country to accept Bitcoin we must accept these kinds of regulations in order for the government and most importantly our economy to grow.

I somehow doubt Malaysia's any better than this neighbour you're talking about (I know who it is haha), it's simply that this decision has come at a time when they know its citizens are already too deeply involved in Bitcoin to stop it. Plus, semi-government agencies are already involved in blockchain and this year saw the first series of conferences, with some notable public servants in attendance.

Of course, it is encouraging to see the central bank willing for the first time to discuss and negotiate, although the push came from a very corporate exchange... so I'm sure discussions are very profit-driven. Nevertheless, it is a first step. Also, using the current new system of public review will probably do a lot for Bitcoin awareness, if not adoption.

However this is right that the decision of Malaysian government is atleast not banning cryptp currency totally . But this decions totally disturbs the idea of decentralization . The regulations imposed makes the crypto currency a sub set of government's economy .
Why is bitcoin continuosly blamed for money laundering?
Was it not before bitcoin?
Were there no money laundering activities and criminal activities before the evolution of bitcoin ?
Was the bank not involved in money laundering?

Yup, I'm a little bit annoy with the Malaysian government latest decision about crypto currency trading. If a government try to get involved, by regulating the crypto currency trading - then the idea of decentralization is not exist at all...

Still, thanks goodness that Malaysian government didn't totally ban crypto currency  :)

You have a point. But maybe they are just highlighting these part of the guidelines concerning on money laundering and anti-terrorism but must have also covered other important aspect like protecting the investors from not being victimized
 from unscrupulous scam artists and making sure that there is the fair playing field that can attract investors to this business arena coming inside and outside of the country. I believe that regulations should be covering all of these concerns so that the country can enjoy the many benefits that cryptocurrency can be bringing. At any rate, this is already a very welcome development as this can mean that Bitcoin will be recognized by the government and that business operators can now surface into the open but have to follow the strict regulations otherwise face some penalties. Let's welcome Malaysia to the growing list of countries where Bitcoin is already legal. And thanks to the government for not following China but Japan.