MALAYSIA: NO PLANS YET TO LICENSE, REGULATE DIGITAL CURRENCY ACTIVITIES, SAYS CENTRAL BANK

KUALA LUMPUR, Malaysia Bank Negara Malaysia (BNM) has no plan to license or regulate digital currency activities, including exchangers at this juncture as they are not legal tender nor are they identifiable to an issuer.(BNM is Malaysia’s central bank)

The bank (BNM) will continue to monitor developments and encourage increased transparency in digital currency activities to prevent their abuse for criminal activity and allow users to better understand and assess the risks, it said.

Members of the public dealing with digital currencies were advised to exercise caution in dealing with digital currencies, said BNM in the common question-and-answer list attached along with the statement on Anti-Money Laundering and Counter Financing of Terrorism Policy (AML/CFT) for Digital Currencies here today.

On BNM’s approach to remittance businesses, payment systems businesses, wallet providers and other service providers which may be linked to a Digital Currency Exchangers (DCEs), it said, the AML/CFT policies for reporting institutions were applicable to any persons providing services related to digital currencies as defined in the policy document.

Other than obligations imposed in the policy document, the bank did not regulate, license or authorise digital currency activities or services linked to such activities, it said.

The AML/CFT policies for reporting institutions are currently in place for remittance businesses and payment systems, including those that may be linked to DCEs, it said.

The central bank said that no one was allowed to run a digital currency exchange business without registering a company with the Companies Commission of Malaysia.

The bank (BNM) expects any person any persons, whether local or foreign, to be incorporated or registered under the Companies Act 2016 if they are carrying on or intending to carry on the activities, it said.

BNM also reiterated that activities related to Initial Coin Offerings (ICOs) were under the purview of the Securities Commission Malaysia.

If the ICO involves activities that fall within the scope of services defined under the policy document, then that activity is under the ambit of the guideline, it said.

Source: NAM News Network