[2018-01-03] Malaysia Will Not Ban Bitcoin Trading, Confirms Finance Minister

[moriskarlov]

Malaysia will not enforce a blanket ban on the trading of cryptocurrencies like bitcoin, the country’s second finance minister revealed.

In an interview with The Malaysian Reserve, the country’s second Finance Minister Johari Abdul Ghani has confirmed that the country’s central bank will not impose a ban on cryptocurrencies, emphasizing that such a draconian move would ‘curb innovation and creativity in the financial sector.’

The official, who said the government is focusing on striking “a balance between public interest and integrity of the financial system”, added:

“It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public.”

The remarks will come as a relief to adopters of cryptocurrencies like bitcoin in Malaysia and represents a shift in stance after Bank Negara Malaysia (BNM) governor Muhammad bin Ibrahim refused to rule out a complete ban on cryptocurrencies back in October 2017. Malaysia’s central bank issued draft regulations for public consultation in mid-December wherein cryptocurrency exchanges will be designated as ‘reporting institutions’.

While open to cryptocurrencies, Johari said the central bank is taking a cautious approach that will focus on the “need to have proper regulation and supervision to ensure any risk associated with such schemes are effectively contained.”

Financial innovation brought on by financial technologies like cryptocurrencies will enhance the country’s economic productivity and make financial intermediation “more seamless” Johari said. Pointedly, the official went on to include digital currencies and e-wallets as a ‘part and parcel’ of Malaysia’s digitalisation roadmap.

Crucially, the finance minister stressed the importance of having a ‘thorough understanding’ of digital currencies before introducing clear regulatory policies.

He stated:

“This is particularly relevant to recent innovation like bitcoin, which remains unregulated globally and not battle-tested against shocks, unlike more conventional mediums of exchange.”

https://www.ccn.com/malaysia-will-not-ban-bitcoin-trading-confirms-finance-minister/

[BitHodler]

I have said it before, and that is the importance of a healthy balance between the crypto market, and the regulations imposed by the government. As long as it is fair, it should stimulate crypto to keep growing.

I like the realistic view of the finance minister in this article, which might indeed help calming down the market there. On the other hand, there is too much FUD going on regarding a ban and whatnot.

It's obvious that there is a collective attampt going on to get this market to sink, but it isn't working. The only annoying thing is that certain crypto news sites are feeding the fear of noobs with their sponsored garbage.

[cynical]

'curb innovation and creativity in the financial sector'
this is along the lines of what Australia were getting at in 2017.
they also want to attract and promote innovation in the blockchain and financial sectors.
they can gain revenue from potential employment in a very important and expanding sector.
i think the statements show good planning and forward thinking in what that report is about.

[Taki]

This is the year when all countries must to accept their final decision about crypto currencies. Malaysia is moving in the right way, regulation of crypto trading will bring more money into the government's treasury, which will stimulate all the life inside the cointry.

[InvoKing]

This is the year when all countries must to accept their final decision about crypto currencies. Malaysia is moving in the right way, regulation of crypto trading will bring more money into the government's treasury, which will stimulate all the life inside the cointry.

Meanwhile, pretty much countries are moving to the wrong / dark side. Read lately some African countries banned Bitcoin : Morocco then Algeria, i forget whether a new Asian country has joined the losers team.

[Slow death]

some African countries banned Bitcoin : Morocco then Algeria...

just see who are the leaders of those countries that are banning bitcoin to understand why they are banning bitcoin. see the history of the president of Algeria, people who have been rich robbing the government these people like power and control everything. Algeria has large reserves of oil and natural gas and they are great allies of russia. They are the kind of countries that people should avoid

Meanwhile, pretty much countries are moving to the wrong/dark side. 

certain countries that are run by a system of corruption see bitcoin as a big enemy that must be destroyed

“It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public.”

But they are not regulating bitcoin
They need to take a firmer position that shows the people of Malaysia that they can buy/sell bitcoin without fear.

[uslfd]

Good to see more countries joining the league to regulate bitcoin rather than outright banning it.
Regulation might seem bad at first but as bitcoin evolves to live alongside regulation, it will only become stronger!

[wilhb81]

I was so excited and delighted, when I heard this news from the local newspapers and medias. At least, Malaysian's government is doing the right thing here. Hopefully, this action will attract more companies to organize ICOs in near future...  

PS: It might be the best "new year gift" to all the Malaysians, especially those alt coin's miners and traders~

[iamTom123]

The official, who said the government is focusing on striking “a balance between public interest and integrity of the financial system”, added: “It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public.”

I am actually a little bit surprised that it seems Malaysia has an open mindset as far as cryptocurrency is concerned and they are not following the easy path utilized by China when it used total ban in September (though many Chinese are still into cryptocurrency right now). As a Muslim-dominated country, I assumed that Malaysia will not entertain the idea of letting Bitcoin flourish albeit in a regulated environment. We have to thank the leaders of Malaysia for not closing its door for innovations and economic benefits that cryptocurrency can be bringing. They should model in part their regulations to that of China and even with South Korea which is doing it now. I am sure they can find Bitcoin a little bit uncomfortable since a big aspect of it can not be controlled totally but then the state has the total power to control its trading and use anytime it wants to so there is no point to be afraid of this new technology and financial tool.

Malaysians should be rejoicing because they can be part and parcel of this new financial revolution and since Malaysia is also a substantial market am sure we can see a bigger boom in this part of Asia for Bitcoin and the whole cryptocurrency. Linking with Singapore on this aspect can help a lot as Singapore now aims to be the cryptocurrency hub in Southeast Asia. Long live, Malaysia. Long live, Bitcoin!

[Samarkand]

...

certain countries that are run by a system of corruption see bitcoin as a big enemy that must be destroyed

...

Why do you think Bitcoin is so popular in the Ukraine - a country that is
quite notorious for the amount of government corruption up to the highest levels?

Recently the Ukrainian politicians had to disclose their Bitcoin holdings and some
of them had pretty large BTC stashes. I´d argue that many of them see the value
of Bitcoin in the fact that it can´t be confiscated even if they are found guilty of corruption.

I´d argue that Bitcoin has a real use case especially in countries that are beset
with corruption.

[BigTeeths]

Good to see more countries joining the league to regulate bitcoin rather than outright banning it.
Regulation might seem bad at first but as bitcoin evolves to live alongside regulation, it will only become stronger!

I really prefer for governments to implement regulations because people see a system to be better if it is regulated and those countries that ban should follow Malaysians on how they see bitcoin, as an innovation and not as a criminal tool.

[Qartersa]

As for me, you cannot really say Malaysia is at the right track or not because these issues are best left to be solved by their sovereign government. They should know better what works for them. No offense meant, I am a Bitcoin supporter but I think this is a very subjective issue to begin with. We cannot just voice out our concerns when we do not know how their culture works in the first place.

Nonetheless, if we speak of Bitcoin, the move of the Malaysian government is definitely, in its judgment, for the greater good. Consequently, it will add up all the more to the popularity of Bitcoin. Hence, tapping another asian country. Surely this will affect other neighboring countries because of its wide acceptance then. 

[peter0425]

This is the year when all countries must to accept their final decision about crypto currencies. Malaysia is moving in the right way, regulation of crypto trading will bring more money into the government's treasury, which will stimulate all the life inside the cointry.

Meanwhile, pretty much countries are moving to the wrong / dark side. Read lately some African countries banned Bitcoin : Morocco then Algeria, i forget whether a new Asian country has joined the losers team.

Indonesia and Bangladesh did. 

Glad though to hear other Asian countries like Malaysia and Philippines can freely trade bitcoin as opposed to their neighbors we look bitcoin at the dark side. Yeah, I think this year each country should decided whether to join or go against crypto's. We are almost at $20K range, so the sooner countries decide who is on our side, the better it will be for the ecosystem.

As much as we want government around the world to really regulate bitcoin on their end, we can really deny that there are really nations who are anti-bitcoin. We are just lucky that we have a full backing of one of the strongest country in terms of financial and technology which is Japan then South Korea, so an extend even Australia who also legalizes bitcoin last July 2017.