Malaysia Will Not Prohibit Cryptocurrency Trading
Several countries around the world have taken a stance on cryptocurrencies. The same is valid now for Malaysia. And unlike other countries which have actually decided to prohibit the trading of bitcoin and other cryptocurrencies, Malaysia is in fact making it clear that it will not place a ban on the cryptocurrency market.
The second finance minister of the country has recently said that authorities will not prohibit the trading of cryptocurrencies, including bitcoin.
This does not mean that the government will not continue to look into this market. In fact, the government has claimed that it will be cautious on the type of technology that is being used by cryptocurrencies.
Banning cryptocurrencies could harm innovation
The main reason why Malayan authorities are not interested in banning cryptocurrencies is linked to their intention to protect the financial system and not put an end to innovation. At least, this is what Johari Abdul Ghanis, the country's second finance minister, said. Johari talked about this subject during a discussion with The Malaysian Reserve.
According to Johari, it is important to come to a "balance between public interest and the integrity of the financial system."
He also claimed that banning digital currencies would only harm fintech innovation. Johari revealed that the authorities are not going to end any type of innovation that it considered to bring benefits to the public.
Still, this does not mean that there will be no intervention from authorities on the cryptocurrency market. In fact, Johari said that the Central Bank of Malaysia, Bank Negara Malaysia, will be the authority in charge with making sure that all digital currency exchanges are conducting the proper checks and are reporting all transactions that seem suspicious.
He also expressed the belief that authorities need to establish a regulatory framework to supervise and reduce the risks associated with the cryptocurrency market. However, Johari also claimed that financial and technology innovation was very important for Malaysia, as it could enhance economic productivity.