Bank Negara Malaysia is reminding Malaysians that digital currency is not legal tender in the country.
As cryptocurrency makes its advance into the world of trade and exchange, so is the debate over whether such a move is wise. Governments and central banks are weighing the pros and cons of a digital currency. However, cryptocurrency is coming up faster than ever before.
In Malaysia, digital currency is not legal tender and is an unregulated industry. Bank Negara issued an alert yesterday about a cryptocurrency platform, Coinzer. The country’s central bank grew concerned when a proposed coin design by the platform included BNM logo and our nation’s Coat of Arms.
Coinzer has since removed the design proposal from its platform and acknowledged it should not have used the symbols without proper authorisation. Also, Coinzer reportedly said it is working closely with the Malaysian government and authorities to gain approval for operations in the country.
It reiterated that digital currency will boost our economy and hopes to assist the government in obtaining recognition, and see “how cryptocurrency platforms like Coinzer work, how Coinzer will help build a better economy for Malaysia and how other countries are proposing regulation.”
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As laws and regulations sort themselves out, Malaysians haven’t waited to enter the market. Many believe the investment is worth the risk as global trends point to cryptocurrency growing stronger in the future. Although digital currency is not legal tender, no ban has been imposed on trading activities.
According to a news report, around RM75 million is traded in bitcoin and other digital currency every month! Bank Negara is hoping for increased transparency of digital currency activities, and we believe it’s working to strike a good balance between innovation and regulation. As with any foray into something new, risks are high and a regulatory framework needs time.
Concerns regarding cryptocurrency include misuse to fund terrorism, money laundering or other illegal activities. This is because regulations aren’t as tight in the cryptocurrency world as in traditional financial systems, not yet at least.
So until then, evaluate all risks before making decisions on digital currency!