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Bitcoin Bank Negara 2017

Are We Ready For Bitcoin?

Are We Ready For Bitcoin?

IN simple language, bitcoin is digital currency, digital cash or electronic currency. It has become a contentious issue for regulators, enforcers and tax authorities over the past decade since it was invented by an unknown programmer and released as an open software in 2009. Bitcoin was created to be a secure, non-regulated, decentralised alternative currency, allowing users anonymity. It is a new way for people to do business. Bitcoins are brought into circulation through a process known as mining. Bitcoin transactions take place on virtual markets known as exchanges and are stored by users in unique wallets, which contain private keys that allow users to prove their ownership. As of February 2015, more than 100,000 merchants and vendors accepted bitcoin as payment. According to a report published by Cambridge University recently, there are between three and six million people using a cryptocurrency wallet, most of them bitcoin. Government agencies are understandably concerned because of its ability to be used anonymously, and therefore a potential instrument for money laundering and various criminal activities. Writer James E. McWhinney in Investopedia said bitcoin was the first decentralised peer-to-peer payment network powered by its users with no central authority or middlemen. That lack of central authority is the primary reason governments are afraid of it. In April 2012, the United States Federal Bureau of Investigation published a report citing fears that bitcoins may be used by cybercriminals in illicit activities. The report, Bitcoin Virtual Currency: Unique Features Present Distinct Challenges For Deterring Illicit Activity, is available online. In Europe, the European Banking Authority (EBA) issued a statement in 2013 warning the general public of risks in Continue reading >>

Govt May Appoint An Official Cryptocurrency Exchange - The Malaysian Reserve

Govt May Appoint An Official Cryptocurrency Exchange - The Malaysian Reserve

Govt may appoint an official cryptocurrency exchange Govt may appoint an official cryptocurrency exchange All cryptocurrencies conversions into cash must be reported as transactions under the anti-money laundering laws in January Bank Negara Malaysia (BNM) is likely to appoint an official cryptocurrency exchange to have a greater oversight and control into the somewhat mysterious digital currency tradings. The countrys monetary authority on Wednesday announced that all cryptocurrencies conversions into cash must be reported as transactions under the anti-money laundering laws, effective January 2018. The control of cryptocurrency trading was expected after the central bank had said that the digital currency could be used for criminal activities, or to finance terrorism activities. Digital currency conversion into cash will now fall under the strict Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. Luno, one of the biggest and globally recognised cryptocurrency exchangers, could be appointed as the sole crypto exchange, said an industry expert. Luno is currently one of the most active exchange platforms in the country with offices in Singapore and South Africa. Luno currently trades the two most popular cryptocurrencies bitcoin and ethereum. It is believed that the authorities have proposed that Luno expand its presence in Malaysia. If it is materialised, our bitcoins will be safely guarded at Luno and transactions monitored, said the industry source who is familiar with the local digital-currency market. Besides Luno, other cryptocurrencies exchange platforms used by locals are Coinhako and Localbitcoins. According to the industry expert, Luno is the only platform that has access to the local banks. But digital currency marke Continue reading >>

Bank Negara Malaysia Is No Closer To Regulating Crypto Just Yet

Bank Negara Malaysia Is No Closer To Regulating Crypto Just Yet

Bank Negara Malaysia is no Closer to Regulating Crypto Just yet Bank Negara Malaysia is no Closer to Regulating Crypto Just yet The regulation of cryptocurrencies proves to be a bigger challenge than anticipated. More specifically, very few countries have active guidelines regarding this new form of money. While no one can prohibit people from using Bitcoin or tell them how to do so, regulators continue to attempt such drastic measures regardless. Bank Negara Malaysia is still on the fence about cryptocurrencies themselves. Banning them is still an option, although it wont affect the markets whatsoever. Even in 2017, most regulators and policymakers dont understand how cryptocurrency works. Banning Bitcoin and altcoins is not possible under any circumstance. Companies can be prohibited from dealing with cryptocurrency and banks may close customer accounts. There is still the option of using cash through P2P marketplaces or decentralized exchange models. One cannot ban what cant be controlled, not now or ever. Bank Negara Malaysia will come to that realization soon enough, regardless of their decision. After all, if Bank Negara Malaysia wanted to ban Bitcoin, they could have done so already. It doesnt require much negotiation or regulation to do exactly that. However, they are not taking this drastic course of action right away. A big surprise to some people, but it is not as easy to get rid of cryptocurrencies these days. The Star notes how China has also banned cryptocurrencies, which is inaccurate information. The Chinese government prohibits ICOs and has temporarily suspended CNY-to-cryptocurrency trading. There is no ban on cryptocurrencies whatsoever. It is evident coming up with guidelines is a difficult venture. All governments can do is make cryptocurrency comp Continue reading >>

Malaysia's Central Bank To Decide On Crypto Regulation At Year's End - Bitcoin News

Malaysia's Central Bank To Decide On Crypto Regulation At Year's End - Bitcoin News

Malaysias Central Bank to Decide on Crypto Regulation at Years End Malaysia central bank Governor is taking bitcoin cues from China. His glib statements are attracting widespread regional attention, as Southeast Asias 4th largest economy attempts to reconcile notorious financial conservatism with radical financial change. Also read: Malaysian Central Bank Focuses on Adapting Fintech Regulation Asian Institute of Finance (AIF) hosted its 9th International Conference on Financial Crime and Terrorism Financing (ICFTF) 2017 in Kuala Lumpur, Malaysia. AIF is the promotional arm for both the countrys central bank, Bank Negara Malaysia (BNM), and its regulatory body, Suruhanjaya Sekuriti Securities Commission Maylasia . ICFTFs keynote was given by Tan Sri Muhammad bin Ibrahim, BNM Governor since 2016. Fifty years at an average 6.5 percent growth rate will do that, as will outperforming Australia and France The conference billed itself as exploring current and new trends in financial crime and the next generation of detection and technological capabilities expected of anti-financial crime professionals to meet global and regulatory expectations. In addition to BNMs Mr. Ibrahim, this years ICFTF listed talks by global law enforcement outfits such as the US Department of Justices East Asia and Pacific Regional Legal Advisor for Cybercrime. In half-a-dozen plenary sessions speakers also included major banks, international businesses, and service providers. Such an august lineup is proof enough Malaysia has arrived on the world financial stage. Fifty years at an average 6.5 percent growth rate will do that, as well as economically outperforming Australia and France (World Economic Forums recent Competitive Rankings ). As a result, theres probably little wonder the country views a Continue reading >>

Making Digital Currencies Transparent In Malaysia

Making Digital Currencies Transparent In Malaysia

Making digital currencies transparent in Malaysia Ref No : 12/17/13 14 Dec 2017 Embargo : For immediate release Invocation of reporting obligations on digital currency exchange business as Reporting Institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 Bank Negara Malaysia (the Bank) has today issued for public consultation, an exposure draft on the invocation of reporting obligations on digital currency exchange business as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). This aims to ensure that effective measures are in place against money laundering/terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currencies activities in Malaysia. The proposed policy sets out the legal obligations, requirements and standards that digital currency exchangers which will be defined under the First Schedule of the AMLA, must carry out as reporting institutions. This includes transparency obligations which are intended to provide relevant information for the public to better understand and evaluate risks associated with the use of digital currencies. Increased transparency will also serve to prevent the use of the digital currencies for criminal or unlawful activities. A digital currency exchanger must also declare its details to the Bank as a reporting institution. Failure to declare its details as reporting institutions or comply with the reporting obligations may subject the digital currency exchangers to the enforcement and non-compliance actions as provided under the AMLA as well as the potential termination or denial of use of financial services in Malaysia. Bank Negara Continue reading >>

Bank Negara Wants Digital Currency Exchangers To Report Their Activities

Bank Negara Wants Digital Currency Exchangers To Report Their Activities

Bank Negara wants digital currency exchangers to report their activities KUALA LUMPUR: Bank Negara has reiterated its stand that bitcoin and its cryptocurrency siblings are not legal payment methods in Malaysia, as the central bank initiates a policy compelling digital currency exchange operators to report their activities. Under the new policy, digital currency exchangers will be categorised as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). The invocation of reporting obligations on digital currency exchangers is the first step towards making digital currency activities more transparent in Malaysia, Bank Negara said in a statement. The reporting obligation to be imposed on these digital currency exchangers, Bank Negara said, is consistent with the requirement invoked under the AMLA on other sectors such as legal and accounting firms, as well as real estate agents which do not fall under the central banks purview. It also does not connote authorisation, licensing, endorsement or validation by Bank Negara on any entities involved in the digital currency exchange services. The public is reminded that digital currencies are not legal tender in Malaysia, it said, reiterating a stand the central bank first made in 2014. So far, Japan is the only country in the region to recognise bitcoin as a legal payment method. Because bitcoin and its siblings are not recognised by Bank Negara, users of these digital currencies will not be covered under established disputed resolution arrangements in the event of any dispute or losses. Digital currency businesses are not covered by prudential and market conduct standards, or arrangements that are applicable to financial institutions regulated by Bank N Continue reading >>

Malaysia's Central Bank Issues Cryptocurrency Regulation

Malaysia's Central Bank Issues Cryptocurrency Regulation

Malaysia's central bank issues cryptocurrency regulation February 5th 2018 | Malaysia | Financial regulation The global frenzy around cryptocurrencies such as bitcoin and ethereum has caused prices to fluctuate wildly over the past year, with the price of bitcoin rising from roughly US$800/coin in January2017 to more than US$19,000/coin in December, before falling to around US$10,000 in early February2018, according to Coindesk, a news website. Malaysia has been no exception, with four crypto-exchanges currently in operation. As the market develops, concerns about criminal activity, fraud and tax evasion have led to increased regulation, which Bank Negara Malaysia (BNM, the central bank) hopes will strike a balance between security and innovation. Cryptocurrency mania has swept through Asia over the past year. Japan is fast becoming one of the largest cryptocurrency markets in the world, with nearly a third of bitcoin transactions conducted in yen. South Koreans have perhaps been the most active adopters, with its Bithumb exchange the world's busiest. Bitcoin specifically has achieved mainstream status, with bitcoin futures contracts now offered by CME Group, a Chicago-based derivatives exchange operator, and the Chicago Board Options Exchange. Malaysia has been no exception to the rule, with BNM data showing that the country's four main cryptocurrency exchanges trade an average of M$75m (US$17.3m) eachmonth. The sector's rapid rise has been touted as a major success for innovation and a new era for the financial sector. Blockchain, the digital code underpinning most digital currencies, has been heralded as a breakthrough innovation, with its distributed-ledger verification system currently being implemented by major international financial institutions to increase the Continue reading >>

Malaysia Legalizing Bitcoin? Bank Negara Issuing Guidelines For Crypto

Malaysia Legalizing Bitcoin? Bank Negara Issuing Guidelines For Crypto

Malaysia Legalizing Bitcoin? Bank Negara Issuing Guidelines for Crypto Malaysia is set to issue new cryptocurrency guidelines by the end of 2017. A recent statement by Malaysias Bank Negara governor that Malaysia may be the next to open its doors to Bitcoin has generated substantial interest in the cryptocurrency community. This would undoubtedly increase the use of Bitcoin by many millions, as residents within the country would have access to relatively cheap payment remittance platforms that were otherwise non-existent. According to one source , this change could come as quickly as November after the meeting that is to determine the central banks stance: During this meeting, it will be decided how the economy should be positioned in regards to cryptocurrencies. It appears this will also be the final meeting among regulators to determine the future of Bitcoin and altcoins in Malaysia moving forward. The government is following a trajectory that has been adopted by a number of other governments in recent months. Australia and Hong Kong have both issued statements indicating a generally positive outlook for Bitcoin, ICOs, and cryptocurrencies generally. The Malaysias Bank Negara governor Tan Sri Muhammad Ibrahim addressed the Global Symposium on Developing Financial Institutions saying: We hope to come out with guidelines on cryptocurrencies before the end of the year: in particular, those relating to anti-money laundering and terrorist financing. We want to ensure that there are clear guidelines for those who want to participate in this sector. While not an explicit statement, it is suggesting that the government will legalize Bitcoin as a currency , the statement indicates that, after adding guidelines, the country will allow its citizens to participate in the cryptoc Continue reading >>

Cryptocurrency Guidelines To Be Out By Year End Bnm

Cryptocurrency Guidelines To Be Out By Year End Bnm

Cryptocurrency guidelines to be out by year end BNM This article first appeared in The Edge Financial Daily, on September 20, 2017. KUALA LUMPUR: Bank Negara Malaysia (BNM) will issue the necessary guidelines on cryptocurrencies by the end of the year, said the central banks governor Tan Sri Muhammad Ibrahim. Speaking to the media on the sidelines of the Global Symposium on Development Financial Institutions, Muhammad said BNM seeks to provide clear guidelines to those seeking to participate in the digital currency. We hope that by year end, BNM will be able to come out with some guidelines on cryptocurrency, particularly those related to anti-money laundering and terrorist financing, he said. Muhammads comment on cryptocurrency came after the Securities Commission Malaysia issued a warning to the public of risks in cryptocurrency-based investments or crowdfunding schemes, such as initial coin offerings (ICO) a term closely resembling initial public offering (IPO). Cryptocurrencies, known for the secure transactions driven by the underlying blockchain or encrypted digital ledger technology, is seeing a huge pickup in investor demand this year. The price of bitcoin, the worlds largest cryptocurrency, has quadrupled to hit over US$4,400 (RM18,422) last month, from just under US$1,000 in January this year. The increased number of cryptocurrencies and a rise in investment schemes involving them have sparked different reactions across the board. China which accounted for 23% of global bitcoin trade has already banned ICOs in the country. JPMorgan Chase & Co chief executive officer (CEO) Jamie Dimon reportedly called bitcoin a fraud that is worse than tulip bulbs, referring to the first recorded economic bubble in the world, caused by speculative trading of tulip bulbs in th Continue reading >>

Bank Negara To Issue Guidelines On Bitcoin, Other Cryptocurrencies By Year End

Bank Negara To Issue Guidelines On Bitcoin, Other Cryptocurrencies By Year End

Bank Negara to issue guidelines on bitcoin, other cryptocurrencies by year end A Bitcoin coin is seen in an illustration picture taken at La Maison du Bitcoin in Paris June 23, 2017. Reuters picKUALA LUMPUR, Sept 19 Bank Negara Malaysia (BNM) is planning to issueguidelines on cryptocurrency by year-end, said Governor, Tan Sri Muhammad Ibrahim. He said cryptocurrency, or digital currency,hadattracted a lot of attention from central banks around the globe. We hope that byyear-end, BNMwill be able to come out with some guidelines on cryptocurrency, particularlythose relatedto anti-money laundering and terrorist financing. We want to ensure that there is a clear guidelinefor those who want to participate in this particular sector, he told reporters on the sidelines of the Global Symposium on Development Financial Institutions here, today. Cryptocurrency, such as bitcoin,is adigital assetdesigned to work as amedium of exchange usingcryptographyto secure the transactions and control the creation of additional units of the currency. Cryptocurrencies are used primarily outside existing banking and governmental institutions, and exchanged over the Internet. While these alternativedecentralised modes of exchange are in the early stages of development, they have the unique potential to challenge existing currency and payments systems. As atJune 2017, total market capitalisation of cryptocurrenciesexceeded US$100 billion(RM419.1 billion), recording a daily volume of morethan US$6 billion. On another note, Muhammad said that strong economic growthand manageable inflation gavethe central bank more flexibility to formulateinterest rate policy. BNM haskept its overnight policy rate unchanged at 3.0 per cent earlier this month, keeping the rate steady since July 2016. Our next monetary Continue reading >>

No Ban: Malaysias Central Bank Is Developing Bitcoin Regulations

No Ban: Malaysias Central Bank Is Developing Bitcoin Regulations

No Ban: Malaysias Central Bank is Developing Bitcoin Regulations Join our community of 10 000 traders on Hacked.com for just $39 per month. Malaysias central bank is reportedly developing guidelines for cryptocurrencies like bitcoin, expected to come into effect later this year. Speaking to reporters on the sidelines of a financial symposium in Kuala Lumpur, Bank Negara Malaysia (BNM) governor Muhammad bin Ibrahim revealed that the central bank will develop clear guidelines for participants in the local digital currency sector. In quotes reported by regional publication The Star Malaysia , the central bank official stated: We hope that by year end, BNM will be able to come out with some guidelines on cryptocurrency, particularly those related to anti-money laundering and terrorist financing. We want to ensure that there are clear guidelines for those who want to participate in this sector. While the central bank is likely to be involved in drafting these guidelines, its unclear if other Malaysian authorities in finance or taxation, as an example, would be involved. In what has largely been a wait-and-see approach to digital currencies, the move towards developing regulation still represents a marked U-turn in the stance taken by the central bank. With a public statement/warning in early 2014, the BNM announced Bitcoin is not recognized as legal tender in Malaysia, while adding that the central bank does not regulate the operations of Bitcoin. The central bank governors revelation comes at a time when Malaysias securities regulator issued a public statement on fundraising via initial coin offerings (ICOs), a radical new form of raising finance through cryptocurrencies. Last week, the Securities Commission Malaysia (SC) cautioned investors of the risks it sees inherent i Continue reading >>

Bnm Moves To Make Digital Currencies Transparent

Bnm Moves To Make Digital Currencies Transparent

BNM moves to make digital currencies transparent Bank Negara reminds public that digital currencies are not legal tender in Malaysia. KUALA LUMPUR: Bank Negara Malaysia (BNM) is moving to make digital currencies transparent in Malaysia with the issuance for public consultation, an exposure draft on the invocation of reporting obligations on the digital currency exchange business as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). The central bank in a statement yesterday said it aims to ensure that effective measures are in place against money laundering/terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currency activities in Malaysia. The proposed policy sets out the legal obligations, requirements and standards that digital currency exchangers which will be defined under the first schedule of the AMLA must carry out as reporting institutions. This includes transparency obligations which are intended to provide relevant information for the public to better understand and evaluate risks associated with the use of digital currencies. Increased transparency will also serve to prevent the use of the digital currencies for criminal or unlawful activities, BNM said. A digital currency exchanger must also declare its details to BNM as a reporting institution. Failure to do so or comply with the reporting obligations may subject the currency exchanger to enforcement and non-compliance actions as provided under the AMLA, as well as the potential termination or denial of use of financial services in Malaysia. BNM said the invocation of reporting obligations on the digital currency exchange business does not in any way connote the Continue reading >>

Bank Negara To Decide By Dec 31 If Alternative Cryptocurrency Should Be Banned

Bank Negara To Decide By Dec 31 If Alternative Cryptocurrency Should Be Banned

Bank Negara to decide by Dec 31 if alternative cryptocurrency should be banned Decision soon: Muhammad speaking at the launch of the conference in Kuala Lumpur. He says if Malaysia decides to recognise digital currencies, then guidelines will be issued on Malaysias approach towards investing in it. KUALA LUMPUR: Those investing in cryptocurrency will know by the end of the year if it would be a legal investment scheme in Malaysia. As other countries have increasingly banned this form of currency, Bank Negara governor Tan Sri Muhammad Ibrahim said that it would make a decision on the matter by the end of the year. In less than three months, we should be able to give you more details, he said when asked if there were any plans to place a ban on cryptocurrencies such as bitcoin, similar to what had been done by Chinas government. Muhammad said that if Bank Negara decided to recognise cryptocurrency, then guidelines would be issued by the end of the year on Malaysias approach towards investing in it. The guidelines that we will be issuing before the end of the year will address issues in terms of registering the players, collecting data and ensuring that whatever they do will be transparent, he told reporters on the sidelines of the 9th International Conference on Financial Crime and Terrorism Financing (ICFCT). It was earlier reported that Bank Negara was planning to unveil guidelines on cryptocurrencies by the end of this year. Muhammad recently said that this new form of currency had attracted much attention internationally, and that the guidelines would also relate to anti-money laundering and terrorism financing. A statement by Bank Negara back in January 2014 said that bitcoin is not recognised as legal tender in Malaysia. Other countries in the region that have plac Continue reading >>

Is Bitcoin Legal In Malaysia?

Is Bitcoin Legal In Malaysia?

Bitcoin seems to be all the craze these days. Its making financial headlines almost everyday. The news is usually about the price of Bitcoin hitting new highs, but there are also news about hacks where a lot of Bitcoin was stolen . Bitcoin is a cryptocurrency, which is basically a digital currency - just like the Ringgit, except it only exists on a computer. You can find the finer details here if youre interested. We wont go into a discussion about the features of Bitcoin, so well leave it at that a lot of people like the advantages Bitcoin offers over conventional currency like the Ringgit. Bitcoin has gained so much traction that some of our local shops have started accepting it, such as this Kelantanese nasi kerabu stall , and these noodle stalls in Puchong, Selangor . You might not have even questioned whether Bitcoin is legal in Malaysia, until some other countries started banning it . Our own Bank Negara was also deciding on how to treat Bitcoin in October 2017 (well get to their actual decision later). But in the first place, is Bitcoin legal or not? Bitcoin is not recognized as money in Malaysia One of the key features of Bitcoin is that its not issued by the Central Bank of any country. The thing is, this feature is exactly what makes Bitcoin not recognized as money in Malaysia (or not legal tender as the law puts it). Just like these ancient coins. Image from ngccoin In Malaysia, whats recognized as currency is controlled by the Central Bank of Malaysia Act 2009 (CBM 2009), and Part III of the Central Bank of Malaysia Act 1958 (CBM 1958). Under Section 20 of the CBM 1958, only Bank Negara has the right to issue currency in Malaysia - any currencies issued by other people are illegal. Section 20 of the Central Bank of Malaysia Act 1958 The Bank shall have the Continue reading >>

(update) Bank Negara Is Not Coming Out With Cryptocurrency Exchange

(update) Bank Negara Is Not Coming Out With Cryptocurrency Exchange

(UPDATE) Bank Negara Is Not Coming Out With Cryptocurrency Exchange UPDATE 25 Nov, 943am: BNM has officially denied that it is going to establish a cryptocurrency exchange. More details below. Bank Negara Malaysia is looking to place cryptocurrency under more regulation next year. In addition to requiring people to report transactions converting cryptocurrency to cash, it is also said to be looking into appointing a official exchange for control over the digital currency. BNMGovernor, Tan Sri Muhammad Ibrahim, said that the new regulations are to prevent the abuse of the currency for criminal or unlawful means. As such all conversions of cryptocurrency (such as Bitcoin) to real money must be reported under theAnti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 from January 2018. Allowing the central bank to monitor the flow of cash for any potential red flags. At the same time, the Malaysian Reserve has reported that BNM is in talks with Luno, one of the worlds biggest cryptocurrency exchanges in the world. The governing body is looking to appoint Luno as the sole official exchange in Malaysia. Providing a single point for transactions to be made. Should this happen, there is a chance that the government will impose the Goods and Services Tax on cryptocurrency transactions. ConsideringBitcoin was trading a 1BTC to RM33567.12 at the time of this story, it could quickly become a very expensive prospect for cryptocurrency investors. BNM has officially released a statement to clarify that it is not looking into establishing a cryptocurrency exchange in Malaysia. It is not appointing any external organization to engage in similar activity as well. MORE: Inno3D P102-100 Cryptocurrency Mining Graphics Card Spotted This is with referenc Continue reading >>

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