Malaysia to Limit Cash Transactions in 2020

[Amel]

the 25,000 RM limit

In my country (Romania) such limit exists for some years now. Just iirc it's about 10000 EUR / cash transaction, so 45000 RM.
And I can tell that I know only 2 cases average Joe faces these limits: when selling/buying a home (house, apartment) or a (new) car, which operations usually happen through bank / credit anyway.
So I think that it's not a real / big problem.

I agree. It can be a problem for high-end criminals and corrupt officials, but for regular people it can't be. In fact, common people can benefit from the restriction, because, instead of being stolen and laundered, money will flow in the right direction: to public schools, state hospitals, etc.

As for the legit firms in Malaysia, who regularly, each day, buy goods and services with the amounts that surpass the 25,000 RM($6,000 USD) limit, I don't think they usually pay with cash for something priced over that limit.

Well, maybe for lower class people it's not too problematic but this will be a problem for private companies or those who have businesses. Surely their business will be hampered by transaction limits that are too low, although not all of them do cash transactions but it will be complicated when having to make transactions.

Maybe it is better for banks in Malaysia to provide special bank accounts for companies to more freely run their business without having to be hampered by this regulation.

[1714810871]

1714810871

[1714810871]

1714810871

[Indymoney]

The Malaysian government wants to control all cash flows of citizens, and therefore adopted such prohibiting laws. Perhaps they thus want to bring the whole business out of the shadows and counter corruption. But this is not freedom, in a free state everyone is free to decide in what form to carry out monetary transactions.

The people of Malaysia cannot be free as to use cash whenever and whatever way they want. They are free but if they are using fiat to purchase illegal stuff such as illegal drugs, illegal arms, services that are also illegal, bribery, and so on, they should be stopped by the government at all cost. I guess the reason why Malaysia started to implement this law is to curb the proliferation of these problems.

These thing can helpful but need some good time and some very hard work and long term plaining as many already mention India already try to do this but sadly fail as mostly peoples thinking Malaysia is also cannot do this but may be we are wrong and they already prepared and done all home work for implementing law like this and can control all.

[buwaytress]

My bank actually called me the same day those implementations came out, probably because there were 2 transactions in the past years that well exceeded those amounts. It was actually for work, I was helping out my employer branch to transfer money, I was the only non-sanctioned nationality in the country at the time and strangely enough, it all went through. I did need to clarify then, and they were reluctantly satisfied but my point is this cash limit applies to electronic and wire transfers (which is what I used) as well.

I have to say though, the 25k MYR limit is really quite huge. The article says 8k a month is the average, but I can tell you that my own family of 5 spends about 3k. And the average wage in my state for a family of 2 earners is 3k.

So really, this is definitely targeting high-volume businesses and individuals, and this country has a long history of helping launderers =p

I think the ruling is fine, and if people have an issue, well, Bitcoin.

[ray_saeed]

Why bitcoiners are sure that people will use crypto instead cash there?

[Getmon]

My bank actually called me the same day those implementations came out, probably because there were 2 transactions in the past years that well exceeded those amounts. It was actually for work, I was helping out my employer branch to transfer money, I was the only non-sanctioned nationality in the country at the time and strangely enough, it all went through. I did need to clarify then, and they were reluctantly satisfied but my point is this cash limit applies to electronic and wire transfers (which is what I used) as well.

I have to say though, the 25k MYR limit is really quite huge. The article says 8k a month is the average, but I can tell you that my own family of 5 spends about 3k. And the average wage in my state for a family of 2 earners is 3k.

So really, this is definitely targeting high-volume businesses and individuals, and this country has a long history of helping launderers =p

I think the ruling is fine, and if people have an issue, well, Bitcoin.

We have here someone who is really living inside the country where this law is going to be implemented. And from this post, I guess there is no problem with this law if you are not involved in transactions that are somehow suspicious and might go under the radar of the government. Even if you will be called up by the authorities, for as long as the transaction involved is clean and legit, you will not be afraid to face them and answer all their questions.

[vintages]

Why bitcoiners are sure that people will use crypto instead cash there?

It's a matter of time before the adoption is circulated, thus people will have no option than to adopt and use BTC.
If the government wants to limit cash flow, there should be a substitute for it which resort to it been cryptocurrency. Moreover, the said policy is weird though, its more like telling people not to have or spend money (their money). Whereas, they need money for daily activities.

[Edraket31]

Why bitcoiners are sure that people will use crypto instead cash there?

It's a matter of time before the adoption is circulated, thus people will have no option than to adopt and use BTC.
If the government wants to limit cash flow, there should be a substitute for it which resort to it been cryptocurrency. Moreover, the said policy is weird though, its more like telling people not to have or spend money (their money). Whereas, they need money for daily activities.

It's not that people don't have option, of course people has option to do the things they want and to invest on the things they think if profitable, and for crypto, we are all aware that it is our future, we might have people who doesn't like this for now, but time will come when they can check and see the advantage of having a cashless society then for sure they will also adopt and they will like it, especially if the government legalize it, then no question at all.

[posi]

Firstly, Malaysia is not the first country to make this statement and the last time i checked most of the country later don't proceed with the process but if the government actually push this through it will definitely boost the use of crypto currency there.

Will it boost cryptocurrency use? Or the use of Visa and Mastercard (with nice fat fees for both of them)?

I think your question itself contains the answer to it. Although Bitcoin is not recognized as money by the Malaysian government, it is neither banned in the country, and people are free to use it as well as elsewhere in the world where it's not banned. So, I think it's obvious that, if Bitcoin will not be banned in Malaysia around the same time the restriction on the use of cash comes into force, some people will choose to use it, in order to avoid the "nice fat fees", you've mentioned.

That's correct ,their government didn't endorse nor against cryptocurrency use but i don't think the cash transaction limit was all about boosting cryptocurrency or credit card use and as Betwrong said the restriction was to force/stop people from a using the unlimited cash agreement which was once authorized by the Malaysian government.

[Pearls Before Swine]

Well, maybe for lower class people it's not too problematic but this will be a problem for private companies or those who have businesses.

I think it was mentioned that businesses were exempt from this limitation. 

This is almost unbelievable to me, that a gov't would limit citizens' access to cash.  If that isn't a huge slap in the face and a threat to basic freedoms, I don't know what is.  Malaysian people ought to be protesting in the street, even if they wouldn't be affected by the limitation.

I think the Malaysian gov't is using a backhanded method of making its people go cashless, by using the excuse that large amounts of cash in people's hands equals crime.  The U.S. gov't stopped making bills larger than $100 for that reason, but at least there's no limit to what people in the states can carry.  Heaven help us if that ever happens.

[hulla]

My bank actually called me the same day those implementations came out, probably because there were 2 transactions in the past years that well exceeded those amounts. It was actually for work, I was helping out my employer branch to transfer money, I was the only non-sanctioned nationality in the country at the time and strangely enough, it all went through. I did need to clarify then, and they were reluctantly satisfied but my point is this cash limit applies to electronic and wire transfers (which is what I used) as well.

I have to say though, the 25k MYR limit is really quite huge. The article says 8k a month is the average, but I can tell you that my own family of 5 spends about 3k. And the average wage in my state for a family of 2 earners is 3k.

So really, this is definitely targeting high-volume businesses and individuals, and this country has a long history of helping launderers =p

I think the ruling is fine, and if people have an issue, well, Bitcoin.

I'm also aware about the act of helping money launderers done within the country cause i once have a friend there and with your explanation the cash transaction limit was implemented as a solution. Although Malaysia stance was not against bitcoin but i don't see any reason why the cash limit transaction will be favourable to crypto currency as most people thought.

[tonyvo2017]

This is one of the great actions of the Malaysian government. They have been realizing the benefits of applying technology in everyday life.
indeed, blockchain technology and electronic wallet applications are very convenient for payment.
Five years ago, we had to run to the post office to pay for internet and electricity bills, ... but now e-wallet systems will solve it in seconds.
So I really admire and appreciate Malaysia and they are so smart.

[suzanne5223]

Well, maybe for lower class people it's not too problematic but this will be a problem for private companies or those who have businesses.

I think it was mentioned that businesses were exempt from this limitation. 

This is almost unbelievable to me, that a gov't would limit citizens' access to cash.  If that isn't a huge slap in the face and a threat to basic freedoms, I don't know what is.  Malaysian people ought to be protesting in the street, even if they wouldn't be affected by the limitation.

I think the Malaysian gov't is using a backhanded method of making its people go cashless, by using the excuse that large amounts of cash in people's hands equals crime.  The U.S. gov't stopped making bills larger than $100 for that reason, but at least there's no limit to what people in the states can carry.  Heaven help us if that ever happens.

Where some people love the idea of the Malaysian government cash transaction restrictions, you think their actions was just a huge step in the face and the last time I checked the Malaysian government are among one of the reasonable government in the Asian continent. Read the message posted by Buwaytress which seems to be from there and you'll understand the reason the restriction is important.

[TheGreatPython]

Maybe they will adopt cryptocurrency, but I don't know the particular they will be adopting. Some of them might not like to adopt Bitcoins because of volatility.

This has always been the problem with people adopting the Bitcoin as a currency, they are always afraid that they might store their money with it and the price will drop and they will end up losing their money in it.
If the FB Libra project was a success I can imagine that a lot of people will start adopting it quickly since it's a stable coin and backed up by some assets that will keep the price at the same level with the US Dollar.

[buwaytress]

~snip

I think the ruling is fine, and if people have an issue, well, Bitcoin.

We have here someone who is really living inside the country where this law is going to be implemented. And from this post, I guess there is no problem with this law if you are not involved in transactions that are somehow suspicious and might go under the radar of the government. Even if you will be called up by the authorities, for as long as the transaction involved is clean and legit, you will not be afraid to face them and answer all their questions.

Yup! I lived there for many years, I don't now but I still do regular transactions with Malaysia and other countries. It's almost as if every time I go to a country I continue to transact with it even after I leave. I even almost kind of pay tax in 2 different countries, even though I don't need to, but I feel like I owe it to them haha. Yeah, a tax loving global citizen =\

But anyway yeah, the law will be implemented, it won't affect anyone I know, and if it does affect you, report it, be clean, and you'll be fine.

I know and respect the rights to privacy, but this is really not about that. I get the calls all the time, other than the slight annoyances, I've been fine for 20 years now.

And if it stops being fine, I'll have Bitcoin as an alternative (and already it is beginning to take over some transactions!).

[Sithara007]

Maybe they will adopt cryptocurrency, but I don't know the particular they will be adopting. Some of them might not like to adopt Bitcoins because of volatility.

No country is going to "adopt" cryptocurrency, because that would mean the destruction of their own national currency, and losing the control over the economy and the citizens. There are nations such as Japan, Germany, Singapore and Switzerland who tolerate cryptocurrency to a great degree, because their national currencies are very strong, and right now Bitcoin or any other cryptocurrency doesn't pose a great deal of danger to their economy or the government control. But that doesn't mean that they are going to adopt cryptocurrency.

[AniviaBtc]

I also agree with the side of investors and business owners since their daily transactions would be capped and their profit as well. They might look into cryptocurrencies because even digital modes of payments by banks that use also fiat would be affected by such policy. And this could pose an increase in market demand, especially to Bitcoin since it leads the market and is much reliable than other alts.

It's because of the production of fiat money is incredibly increasing so that their currency becomes useless. That's the reason why in other countries, they limit their production of cash.

Everything will be affected by this if they continue banning or limiting the number of cash or fiat money that is being used in everyday lives. The important role of limiting the production of cash is to promote and develop the use of cryptocurrency as the primary payment for transactions.

Bitcoin is really dominant and powerful and can make a big change in banks and any part of the world 10 years from now. Digital transactions are very common in our generation and I think the increase in market demand will surely fit in.

[aardvark15]

This is probably the trend in the future. More and more of my daily transactions in America are cashless. Whether it’s credit card payments, PayPal, or direct bank transfers, most transactions I do are not using cash.

[abhiseshakana]

I think it was mentioned that businesses were exempt from this limitation. 

This is almost unbelievable to me, that a gov't would limit citizens' access to cash.  If that isn't a huge slap in the face and a threat to basic freedoms, I don't know what is.  Malaysian people ought to be protesting in the street, even if they wouldn't be affected by the limitation.

I think the Malaysian gov't is using a backhanded method of making its people go cashless, by using the excuse that large amounts of cash in people's hands equals crime.  The U.S. gov't stopped making bills larger than $100 for that reason, but at least there's no limit to what people in the states can carry.  Heaven help us if that ever happens.

The limitation is not about the amount of cash they can have, but the number of cash transactions that can be done by individuals or companies. We don't yet know how the regulation is written in the bill, per transaction or per certain period of time. If per transaction, we can divide one large transaction into several small cash transactions. If per person per transaction per new day is really limiting.

The policy of limiting cash transactions is not a threat to basic freedom but instead is a good tool to protect the basic freedom of society from corruptors and criminals. Corruption money can be diverted to empower people's desires, such as health, education and equitable distribution of infrastructure.

The idea of ​​limiting cash transactions has already been applied in several countries and in fact, cash is indeed used to avoid tracking. 100% of arrest operations by the Corruption Eradication Committee in Indonesia are always obtained in cash (US dollars, Singapore dollars or Rupiah) in a fantastic amount. When one of the corruptors was arrested in Indonesia in his safe deposit box, he found a cash amount of USD 5 million that was allegedly the result of corruption.

Restrictions on cash transactions will certainly affect transactions in remote areas that rely on cash transactions for the purchase of real sample items that I will face if there are restrictions on cash transactions for payment of purchases of live lobsters to fishermen whose value is around USD 8000 / transaction. the fishermen refused to use the transfer method because the cash would be immediately distributed to divers after depositing the lobster to me.

[rdluffy]

It's insane thinking about limitations about our own money, and about the limit of governments
Otherside is the fact that who make some huge transactions in cash? It's dangerous nowadays

About the effect in BTC, I don't think people will start to use just to this reason, but can be a good advertise to BTC in this country

[naikturun]

It is not certain that Malaysia will impose or legalize bitcoins they should also consider it in various aspects.
I think they will do another way first, before actually doing this.
I really like if the development of BTC and Crypto is wider, but it is not easy and fast.