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Bitcoin Bank Negara Malaysia 2017

(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 >>

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 >>

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 >>

Bnm Deputy Governor Warns Of 'high Risks' In Bitcoin

Bnm Deputy Governor Warns Of 'high Risks' In Bitcoin

BNM deputy governor warns of 'high risks' in bitcoin KUALA LUMPUR (Dec 15): Bank Negara Malaysia (BNM) deputy governor Abdul Rasheed Ghaffour has likened the price movements of bitcoin to "bubbles" and "financial scams" of the past. "It is really akin to many of the financial scams that we have seen. Anything that has high returns has high risks," he told a media roundtable on reporting obligations by digital currency exchanges to the central bank today. However, Abdul Rasheed concedes that the present returns for early investors of bitcoin cannot be achieved through other investments. "[Comparing] the bitcoin price when it was issued and the price today if you look at any investments, I don't think you can get that much of returns. "But if you look at its price movements, it is very clear that it's like a bubble," he added. Bitcoin is the largest cryptocurrency, with a market capitalisation of US$289.4 billion. Issued in 2009, prices have rallied from under US$1,000 per unit at end-2016 to above US$17,000 this month. At 1.42pm, it was trading at US$17,272.29 per unit. While BNM has indicated its willingness to be more involved in the cryptocurrency market, Abdul Rasheed warned participants to "exercise due care" in dealing with digital currencies, including assessment of associated risks such as hacking and price volatility. In a move to learn more about the new currency spectrum, the central bank has sought to require all digital currency exchanges (DCEs) with Malaysian clients to report its activities to the central bank under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). Information obtained from the DCEs through the policy implementation will be made available to the public, which Abdul Rasheed said is the 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 >>

Bank Negara Malaysia Will Introduce Crypto Regulation In Early 2018

Bank Negara Malaysia Will Introduce Crypto Regulation In Early 2018

Governments around the world are actively looking for ways to regulate Bitcoin and other cryptocurrencies. That is much easier said than done, as there is no real way to control Bitcoin and altcoins. Governments do not control the issuance, creation, or flow of money in this industry. Over in Malaysia, we may see a firm form of cryptocurrency regulation in place as early as next year. It is unclear whatexactly that will entail, though. Malaysia Prepares for Active Cryptocurrency Regulation It was to be expected that Bank Negara Malaysia would introduce cryptocurrency regulation. After all, the institution has been actively discussing this topic for quite some time now. It was expectedit would introduce regulation this year, butthistime frame has beenpushed back to early 2018. That can only be considered a good thing, mind you, as we need governments to take their time before making any decisions when it comes to cryptocurrencies. Arepresentative of Bank Negara Malaysia has indicated this regulation will go into effect very soon. It appears people who convert cryptocurrency into fiat currencies will be considered reporting institutions. This means these individuals will be subject to the countrys Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds of Unlawful Activities Act of 2001. It is quite the mouthful, but it basically means that converting Bitcoin or altcoins to fiat will put individuals and companies on par with regular banks. This doesnt mean cryptocurrencies are suddenly considered legal tender in Malaysia, though. Anyoneusing crypto will need to adhere to the strict guidelines affecting banks and other financial institutions. This should help prevent criminals from abusing the cryptocurrency ecosystem and deter people from committing unlawful activi 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 >>

Malaysia's Central Bank Releases Draft Rules For Cryptocurrency Exchanges

Malaysia's Central Bank Releases Draft Rules For Cryptocurrency Exchanges

Malaysia's Central Bank Releases Draft Rules for Cryptocurrency Exchanges Dec 14, 2017 at 20:00 UTC|UpdatedDec 14, 2017 at 21:02 UTC Malaysia's central bank has published new draft regulations for cryptocurrency exchanges that operate in the country. On Thursday, Bank Negara Malaysia announced the move in a release on its website , asking the public to weigh in on measures aimed at easing money laundering and terrorist financing concerns related to cryptocurrencies. Following months of work in this area, the proposed regulations require businesses to verify their customers' identities, monitor transactions and report any suspicious activities toMalaysian authorities. Additionally, companies must report usage statistics to the central bank. If approved, the regulations would apply to any person or company which exchanges cryptocurrency on behalf of someone else.And while the regulations acknowledge that companies might use cryptocurrencies, the nation officially still does not recognize them as legal tender. "Members of the public are therefore advised to undertake the necessary due diligence and assessment of the risks involved in dealing in digital currencies or with entities providing services associated with digital currencies." Bank Negara Malaysia is taking written feedback on the draft rules until Jan. 14, according to the release. The regulations were explained by governor Muhammad Ibrahim last month as tools to prevent illicit money transmission. While the regulations will only apply to exchanges - "which are being referred to as "reporting institutions" - the country's securities regulator is looking at creating a framework for cryptocurrencies in general as well. The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalist Continue reading >>

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 >>

Bank Negara To Enforce Cryptocurrency Regulations In 2018

Bank Negara To Enforce Cryptocurrency Regulations In 2018

Bank Negara to enforce cryptocurrency regulations in 2018 Updated 4 months ago Published on 22 Nov 2017 12:43PM 0 comments Governor Muhammad Ibrahim says the use of artificial intelligence and big data in the financial sector will have the potential to increase the efficiency and accuracy of assessments, which is essential in a dynamic environment. The Malaysian Insight file pic, November 22, 2017. BANK Negara Malaysia will designate persons converting cryptocurrencies into fiat money as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 beginning next year. Governor Muhammad Ibrahim said the move was aimed at preventing the abuse of the system for criminal and unlawful activities, and ensuring the stability and integrity of the financial system. We need to prepare ourselves, as according to many pundits, digital currencies will become the new norm. "The advent of digital currencies, as some have forecast, will mark the beginning of a new era in the financial sector. As authorities, we cannot be oblivious to these developments," he said in his welcoming remarks at the Third Counter-Terrorism Financing (CTF) Summit 2017 in Kuala Lumpur today. He said artificial intelligence, machine learning and big data technology were tools that would likely be imperative as suspicious transactions became more complex and harder to detect. "As we have learned from the Innovation Forum at this summit, the use of artificial intelligence and big data will have the potential to increase the efficiency and accuracy of assessments, which is essential in a dynamic environment. "The banking sector needs to adopt the latest and most advanced technologies to improve its risk management framework. Muhammad said greater ac Continue reading >>

Bank Negara To Meet Digital Coin Exchangers, Seeks Feedback On Reporting Obligations

Bank Negara To Meet Digital Coin Exchangers, Seeks Feedback On Reporting Obligations

Bank Negara to meet digital coin exchangers, seeks feedback on reporting obligations Last updated on 17 December 2017 - 08:59pm KUALA LUMPUR: Bank Negara Malaysia (BNM) is scheduled to meet the active digital currency exchangers today with regard to the reporting obligations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). Were also issuing exposure draft to them for their comments, deputy governor Abdul Rasheed Ghaffour said at a media briefing on Making Digital Currencies Transparent in Malaysia here last Friday. The exposure draft states that upon the initial acceptance of a customer, reporting institutions are required to regularly review and update the customers risk profile based on the level of money laundering and terrorism financing (ML/TF) risks. Reporting institutions are required to conduct customer due diligence on all customers and the persons conducting the transaction in the circumstances set when the reporting institution establishes business relationship with the customer; and when the reporting institutions have any suspicion of ML/TF. Among the data needed by the central bank are the number of transactions, including the conversion from digital currency to fiat money and vice versa as well as conversion from a digital currency to another; the value of the transactions, net buy and sell position, purpose of transactions, payment method and the number of customer accounts. Abdul Rasheed noted that the regulators do not have intention to ban digital currency trading as it is part of market innovation and creativity. What is important is we need to balance this between public interest and the integrity of the financial system. We need to take a careful approach and considerations on this. Abd 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 >>

Bank Negara Malaysia Aims To Regulate But Not Prohibit Bitcoin

Bank Negara Malaysia Aims To Regulate But Not Prohibit Bitcoin

Bank Negara Malaysia Aims to Regulate but not Prohibit Bitcoin JP Buntinx | September 19, 2017 | 11:00 am Bank Negara Malaysia Aims to Regulate but not Prohibit Bitcoin JP Buntinx | September 19, 2017 | 11:00 am Several dozen central banks oppose cryptocurrencies and everything they stand for. At the same time, these same institutions want to create their own digital currency in the future. Bank Negara Malaysia is looking at ways to regulate cryptocurrency sooner rather than later. According to our sources, the bank will have something in place by the end of 2017. No one knows for sure how this will play out, though. Regulation of cryptocurrency is not as easy to define by any means. After all, one cannot regulate something which has no leader or central body. Bitcoin and altcoins have caused many headaches for regulators all over the world. Especially now that the prices are increasing, some countries want to put an end to cryptocurrency once and for all. The only way they can do so is by regulating centralized exchanges and other service providers. How things will play out in Malaysia, remains to be seen. Bank Negara Malaysia made their intentions clear yesterday evening. The institution plans to create cryptocurrency regulations before the end of 2017. That appears to be a rather brief timeline. However, it is possible they have been working on such rules for quite some time now. Defining a guideline for Bitcoin activity in the country will always have some interesting consequences. It is true cryptocurrencies have attracted a lot of attention. Not just from consumers and enthusiasts, but also from central banks. Given the threat Bitcoin poses to traditional banking, regulation is the only option. Unfortunately for the financial sector, they can never regulate Bitco Continue reading >>

Malaysia To Place Bitcoiners Under Existing Anti-money Laundering Laws

Malaysia To Place Bitcoiners Under Existing Anti-money Laundering Laws

Malaysia to Place Bitcoiners Under Existing Anti-Money Laundering Laws In order to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system,Bank Negara Malaysia GovernorTan Sri Muhammad Ibrahim stated 22 November 2017 that those trading in cryptocurrencies will be placed under the countrys existing anti-money laundering laws. Also read: Malaysias Central Bank to Decide on Crypto Regulation at Years End Joseph Chin of The Star Online reports, Bank Negara Malaysia is developing the regulatory structure for digital currencies, and from 2018 persons converting crypto currencies into fiat money currencies will come under anti-money laundering law, he notes. Such persons would be designated as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001. The central banks Governor made his remarks at the Third Counter-Terrorism Financing Summit. Its a four day conference organized by the bank, partnering with Australias financial intelligence agency, AUSTRAC, and Indonesias Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK), the website press release read. The gathering brings together more than 350 specialists and professionals from 35 countries and international organisations to share their insights on the latest terrorism financing (TF) issues and developments, they emphasize. Mr. Ibrahims talk was titled, Readying the Financial Sector Amid the Evolving War on Terrorism Financing, saying in part,regulators must prepare themselves as digital currencies will become the new norm, The Star Online paraphrased. We must harness the vast potential in technological innovations, the central banker warned, to reinvent and reinforce our li Continue reading >>

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