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Malaysia Cryptocurrency Regulation

Malaysian Central Bank: Id Now Needed For Any Crypto Exchange Transaction

Malaysian Central Bank: Id Now Needed For Any Crypto Exchange Transaction

Malaysian Central Bank: ID Now Needed For Any Crypto Exchange Transaction Malaysia has enacted anticipated legislation compelling cryptocurrency exchanges to identify traders. Cryptocurrency exchanges in Malaysia must now fully identify traders after new central bank anti-money laundering legislation came into effect Tuesday, Feb. 27. A copy of the legislation and official press release from the Bank Negara Malaysia (BNM) states that any exchanges offering crypto-to-fiat, fiat-to-crypto and even crypto-to-crypto trading must identify the customer and verify that customers identity. As Cointelegraph reported in November 2017, forecasting the regulations, BNM Governor Tan Sri Muhammad bin Ibrahim placed emphasis on the need to control potential criminal usage of digital currencies. 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, the BNM Governor said. Now, exchange operators must comply with various statutes relating to customer due diligence (CDD) before allowing new and existing accounts to legally continue activity. According to the legislation, reliable, independent source documents, data or information is required, and specifically a government-issued ID: In conducting CDD on an individual customer and beneficial owner, the reporting institution is required to obtain at least the following information: (b) National Registration Identity Card (NRIC) number or passport number or reference number of any other official documents bearing the photograph of the customer or beneficial owner; (c) residential or mailing address; (d) date of birth; (e) nationality; and (f) purpose of transaction Formal steps to add transparency to cryptocurrency tr Continue reading >>

Malaysian Central Bank: Cryptocurrency Belongs To The People, They Must Regulate It Themselves

Malaysian Central Bank: Cryptocurrency Belongs To The People, They Must Regulate It Themselves

Malaysian Central Bank: Cryptocurrency Belongs to the People, They Must Regulate it Themselves While some governments and central banks see cryptocurrency as a massive threat to their existence and therefore formulate acidic laws that would cripple the growth of the crypto ecosystem, Bank Negara, Malaysias Central bank is taking a more democratic approach towards cryptocurrency regulation . Bank Negara, Malaysias central bank, is set to release a brief document that will enable the public to decide how best to regulate the digital currency industry. The authority has made it clear that it will neither ban nor recognize cryptocurrencies. As per the Borneo Bulletin governor of Bank Negara, Muhammad Ibrahim, who was present at the 40th-anniversary dinner party of the Harvard Business School Alumni Club of Malaysia, said that a concept paper on cryptocurrency is almost ready and the public will be given a chance to decide the fate of virtual currencies. He also noted that the central bank would not give digital money the same status with fiat currency but would instead leave its regulation to crypto investors. Basically, we will let the cryptocurrency promoters including bitcoin , ethereum, and ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too. By doing so, the public can decide on its own if they want to invest in cryptocurrencies Harsh Crypto Laws would Destroy Creativity and Innovation Unlike its Asian brothers, China, Malaysia does not see blockchain-money as a threat to its economy; the country of more than 31 million people instead wants to create an enabling environment for cryptocurrency to thrive. Finance Minister II Johari Abdul Ghani hinted that placing a ban on cryptocurrency is not on t Continue reading >>

Malaysia To Enforce Cryptocurrency Regulation In 2018

Malaysia To Enforce Cryptocurrency Regulation In 2018

Malaysia to enforce cryptocurrency regulation in 2018 Malaysia to enforce cryptocurrency regulation in 2018 Malaysia to enforce cryptocurrency regulation in 2018 KUALA LUMPUR: Malaysia's central bank, Bank Negara Malaysia (BNM), 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 from 2018. BNM 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 financial system. We need to prepare ourselves, as according to many pundits, digital currencies will become the new norm," he said in his welcoming remarks at the Third Counter-Terrorism Financing Summit 2017 in Kuala Lumpur on Wednesday (Nov 22). "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." Muhammad said the adoption of artificial intelligence, machine learning and big data technology were tools that would likely be imperative, as suspicious transaction become more complex and harder to detect. "As we learned from the Innovation Forum at this Summit, the use of artificial intelligence and big data will have the potential to increase efficiency and accuracy of assessments that is essential in a dynamic environment," saidMuhammad. "The banking sector needs to adopt the latest and most advanced technologies to improve its risk management framework." Muhammad said that greater access tointelligence information for financial institutions and risingthreatfrom the Islamic State had resulted in the upward trend of reporting of Suspicious Trans Continue reading >>

The Public Will Decide Cryptocurrencies Future: Malaysias Central Bank

The Public Will Decide Cryptocurrencies Future: Malaysias Central Bank

The Public Will Decide Cryptocurrencies Future: Malaysias Central Bank Join our community of 10 000 traders on Hacked.com for just $39 per month. The head of Malaysias central bank has firmly stated that the fate of cryptocurrencies in the country depends on the public adopting them, adding it would neither ban nor recognize cryptocurrency. Speaking at the 40th-anniversary dinner of the Harvard Business School Alumni Club of Malaysia this month, Bank Negara governor Muhammad Ibrahim had some noteworthy things to say about the future of cryptocurrencies like bitcoin in Malaysian society, according to a report by local portal The Nation . The central banker, refreshingly, revealed a decidedly free-market stance on cryptocurrencies wherein a hands-off approach would essentially see the public make their own decisions with investments or participation in cryptocurrency markets. Basically, we will let the cryptocurrency promoters including bitcoin, Ethereum and ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too, the central bank chief stated, hinting at introducing some fundamental guidelines for the cryptocurrency sector to operate in Malaysia. By doing so, the public can decide on its own if they want to invest in cryptocurrencies. The central bank governor was quick to stress that the authority would not recognize cryptocurrency as fiat money while notably adding it wouldnt ban cryptocurrencies in the country either. The central bank chief also revealed an upcoming concept paper for the public on cryptocurrencies, presumably a detailed report to educate residents of cryptocurrencies. Malaysias central bank is already working toward a regulatory framework that will, for instance, deem cryptocurrency Continue reading >>

Bank Negara Malaysia Issues Policy Document For Digital Currencies

Bank Negara Malaysia Issues Policy Document For Digital Currencies

Bank Negara Malaysia issues policy document for digital currencies Ref No : 02/18/07 27 Feb 2018 Embargo : For immediate release Bank Negara Malaysia (the Bank) has today issued the Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies (Sector 6) which has taken into account feedback received during the public consultation period on the exposure draft released on 14 December 2017. The policy aims to ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currency activities in Malaysia. The Bank received feedback from representatives of existing digital currency exchangers, industry associations, law firms, financial institutions, academia as well as interested individuals. Feedback received from respondents mainly focused on the obligations imposed on digital currency exchangers, including businesses providing intermediary services involving digital currencies. The Bank wishes to reiterate that the invocation of reporting obligations on digital currency exchange business does not in any way connote the authorisation, licensing, endorsement or validation by the Bank of any entities involved in the provision of digital currency exchange services. Where relevant, these matters have been further elaborated in the policy document. The public is reminded that digital currencies are not legal tender in Malaysia. Accordingly, digital currency businesses are not covered by prudential and market conduct standards or arrangements that are applicable to financial institutions regulated by the Bank. Members of the public are advised to carefully evaluate the risks associated with dealings in digital currencies. Any pe 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 >>

Malaysia Issues Draft Regulations For Crypto Currency Businesses

Malaysia Issues Draft Regulations For Crypto Currency Businesses

December 14, 2017 / 3:08 PM / 4 months ago Malaysia issues draft regulations for crypto currency businesses KUALA LUMPUR (Reuters) - Malaysias central bank on Thursday said it had issued draft regulations for digital currency businesses, but said that such currencies were still not legal tender in the country. FILE PHOTO: A token of the virtual currency Bitcoin is seen placed on a monitor that displays binary digits in this illustration picture, December 8, 2017. REUTERS/Dado Ruvic/Illustration/File Photo A draft of the guidelines, which has been issued for public consultation, says digital currency exchange businesses will be designated as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA). 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, Bank Negara Malaysia (BNM) said in a statement. However, the draft regulations are not an authorization or endorsement of any entities involved in the provision of digital currency exchange services, BNM said. The public is reminded that digital currencies are not legal tender in Malaysia, the statement added. Malaysias Central Bank Governor Muhammad Ibrahim said last month that the bank had begun work on the regulatory structure for digital currencies such as bitcoin, aimed at securing the country against money-laundering and terrorism financing. BNM said the guidelines were the first step toward making digital currency activities in Malaysia more transparent. South Koreas government called an emergency meeting earlier this week to discuss the trading of crypto currencies and measures on t Continue reading >>

No Ban On Cryptocurrency Tradings, Says Johari - The Malaysian Reserve

No Ban On Cryptocurrency Tradings, Says Johari - The Malaysian Reserve

No ban on cryptocurrency tradings, says Johari No ban on cryptocurrency tradings, says Johari BNM will not impose a blanket ban on cryptocurrencies, including bitcoin Malaysia will not impose a blanket ban on cryptocurrency tradings as more locals bet on the new investment asset class and growing interest for a currency that is free from regulatory claws. Finance Minister II Datuk Seri Johari Abdul Ghani said the central bank will not impose a blanket ban on cryptocurrencies, including bitcoin, as such action will only curb innovation and creativity in the financial sector, particularly financial technology. The government is fully aware of the need to strike a balance between public interest and integrity of the financial system, he told The Malaysian Reserve in a recent interview. Johari said the monetary authority is taking a cautious approach with digital currencies including bitcoin to ensure safety measures are in place to protect the interest of the public. It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public, he said. However, similar to any financial and investment schemes, there is a need to have proper regulation and supervision to ensure any risk associated with such schemes are effectively contained, he said. Johari said although Bank Negara Malaysia (BNM) does not regulate digital currencies presently, it will ensure digital currency exchanges (DCEs) comply with requirements to conduct customer due diligence and report suspicious transactions to the authorities. While plans are in place for the central bank to recognise regulated DCEs, Johari (picture) said the appointments will only be done with the proper cryptocurrencies regulation in place. He said information obtained from Continue reading >>

Irb: Cryptocurrency Not Regulated But Traders Still Subject To Malaysian Income Tax Law

Irb: Cryptocurrency Not Regulated But Traders Still Subject To Malaysian Income Tax Law

IRB: Cryptocurrency not regulated but traders still subject to Malaysian income tax law FILE PHOTO: A Bitcoin logo is seen on a cryptocurrency ATM in Santa Monica, California, U.S., January 4, 2018. REUTERS/Lucy Nicholson/File Photo The Inland Revenue Boards (IRB) investigation into London based cryptocurrency exchanger Luno is not a phishing exercise for information on cryptocurrency traders, says its chief executive officer Datuk Seri Sabin Samitah. Responding to a query on why the Luno bank account in Malaysia was frozen by IRB, he said the audit was to determine whether the cryptocurrency company has complied with the statutory requirement under the Income Tax Act 1967 and to ascertain if the business is involved in money laundering activities. He said though the cryptocurrency business was an unregulated industry in Malaysia, it was subject to Malaysian income tax by virtue of the Section 3 of the Act, whereby tax shall be charged upon the income of any person accruing in or derived from Malaysia. The IRB is adopting the standard investigation procedure in dealing with cryptocurrency traders by inspecting their source documents and accounting records, he said, in an e-mail reply to The Star on Friday. He added that since source documents may be in the form of e-wallet and blockchain-based record keeping which were kept in Cloud servers, IRB needed to ascertain that cryptocurrency company was complying with stipulated laws on record keeping. This meant the company would need to keep proper books of accounting and business records in Malaysia for the purpose of auditing by the relevant law enforcement agencies. Consequently, the request of information under Section 81 of the Act and Section 37 of the AMLATFPUAA 2001 is truly to assist the investigation or audit and Continue reading >>

Reasons Behind Bank Negara Malaysia's Regulations On Cryptocurrency

Reasons Behind Bank Negara Malaysia's Regulations On Cryptocurrency

Malaysias cryptocurrency guidelines determined that cryptocurrency isnt legal tender in Malaysia, and that exchanges need to adhere to KYC rules. The public needs to be careful when transacting in crypto, due to its volatility, and how Bank Negara wont be able to help in case of misconduct. Cryptocurrency is a nascent stage, but if it gains more commercial traction, countries might consider issuing a sovereign cryptocurrency as a safe alternative to counter the use of decentralised cryptocurrency. After a long wait, Bank Negara finally issued a cryptocurrency guideline in Malaysia in February; it basically decrees Malaysians can trade in cryptocurrencies, as long as exchanges and individuals collect information like theirfull name, address, and date of birth of all customers, in addition to ID documentation. This guideline came out after the market was left reeling from a recent crash in Bitcoins value . The regulator has also concluded that cryptocurrency isnt legal tender in Malaysia, so individuals who still choose to transact in them are encouraged to keep that in mind and conduct their own due diligencein case of robberies or losses. Malaysia follows a global trend looking to increase transparency in cryptocurrency tradersin hopes of a clear money trail, insight on thecryptocurrency cashflow in and out of the nation, and to help circumvent issues like money laundering. At the Malaysia Fintech Expo earlier this week, we managed to get some insight on why Malaysia has chosen to take a more permissive stance on the controversial coin. During a keynote speech by Tan Nyat Chuan, Director of the Payment Systems Policy of Bank Negara Malaysia (BNM), someamong the crowd stood up to ask questions relating to cryptocurrency. While Tan may not directly handle the crypto-regu Continue reading >>

Malaysia Cryptocurrency Regulation: Government To Neither Ban Nor Recognize Cryptocurrency

Malaysia Cryptocurrency Regulation: Government To Neither Ban Nor Recognize Cryptocurrency

Malaysia Cryptocurrency Regulation: Government to Neither Ban nor Recognize Cryptocurrency While most country officials are progressively listing out reasons explaining why cryptocurrencies must be stopped from entering onto their mainland, Malaysia plans to give it a try, by keeping its better side upfront. Let public be the better judge of cryptocurrency adoption Basically, we will let the Cryptocurrency promoters including Bitcoin , Ethereum and ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too. By doing so, the public can decide on its own if they want to invest in cryptocurrencies. Muhammad Ibrahim, governor of Malaysian central bank. It was in the course of question and answer round on the eve of 40th-anniversary dinner of Harvard Business School Alumni Club of Malaysia, when Muhammad Ibrahim, the Governor of Malaysian Central Bank declared the above statement. While Mr Muhammad is pretty sure that cryptocurrencies arent provided with the recognition of fiat currency by the countrys central bank. He certainly plans on providing an open stage, and let the market decide the future of the same in the country. During the same anniversary feast, he even publicised that a notion paper on cryptocurrencies shall be completed soon which will serve the community with the supremacy to resolve how they desire to move forward with this constantly embryonic marketplace of diversity. Malaysian govt. embracive towards cryptocurrency regulations Undoubtedly at this time, when most countries are not in favor of accepting a new form of economy and trying to block the same at all cost. Malaysia has come up as an example, on how the new must be welcomed and shall be provided with a chance to grow. No plans to Continue reading >>

Malaysia's Bank Negara Publishes Regulations For Cryptocurrency Exchanges

Malaysia's Bank Negara Publishes Regulations For Cryptocurrency Exchanges

Malaysias Bank Negara the countrys central bank, has just published new draft regulations for cryptocurrency exchanges that take place within this Asian nation. Announcing the developments through its official website, Bank Negara asked the public to weigh in on the new regulations as a way of countering various crimes. BNM governor Muhammad Ibrahim expects the rules to be able to stop cases of money laundering and financing terror-related concerns using digital currencies in Malaysia. The announcement was on Thursday 14th, 2017, following months of work that involved ironing out the regulatory framework. Working on it started way back in September and brought together dignitaries at a Counter-Terrorism Financing Summit, although no one expected them to have been finalized by now. Back then, Reuters had reported the giant banks motives that were in line with the countrys anti-money laundering and anti-terrorism financing Act. Proposed Regulations Are Meant For Market Integrity And Investor Projection It isnt a secret that cryptocurrencies can be used in illegal deals, including funding terrorists. Bitcoins are decentralized , unregulated and highly valuable and thats why criminals prefer to use them instead of fiat currencies. And with Malaysia having many terror-affiliated criminals, maybe this will be a smart move. The proposed regulations would require corporates to verify identities of the clients, monitor all cryptocurrency-based transactions , and report any questionable dealings to the Malaysian authorities. Furthermore, the rules will need all companies to report usage statistics to the countrys central bank regularly. The draft regulations state that everyone would be advised to follow due diligence and assess the risks involved when dealing with anything that Continue reading >>

New Malaysian Cryptocurrency Regulation Come Into Effect

New Malaysian Cryptocurrency Regulation Come Into Effect

New Malaysian Cryptocurrency Regulation Come Into Effect Last week, Malaysias new Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) policy guidelines specifically addressing cryptocurrencies came into effect. The new regulations compel Malaysian virtual currency exchanges to mandate KYC adherence, including the collection of ID documentation. Also Read: Two Indian Token Marketplaces Suspend Trading Due to Regulatory Pressure New Malaysian AML/CFT Guidelines for Cryptocurrencies Aim to Increase [] Transparency Bank Negara Malaysias stated policy objective is to ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of digital currencies, in addition to increas[ing] the transparency of digital currency activities in Malaysia. The new policy guidelines assert that Promoting greater transparency in the use of digital currencies serves to protect the integrity of the financial system and strengthen incentives to prevent their abuse for illegal activities The legislation came into effect on February 27th, with Bank Negara Malaysia stating that it [took] into account feedback received during the public consultation period on the exposure draft released on 14 December 2017. The bank added that the feedback it received mainly focused on the obligations imposed on digital currency exchangers, including businesses providing intermediary services involving cryptocurrencies. Malaysian Cryptocurrency Exchanges to Implement KYC Requirements The policy document states that Malaysian cryptocurrency exchanges are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with customer and when th Continue reading >>

Bank Negara Malaysia Issues Cryptocurrency Regulation

Bank Negara Malaysia Issues Cryptocurrency Regulation

Bank Negara Malaysia Issues Cryptocurrency Regulation Following the public consultation issued by Bank Negara Malaysia in December, the central bank has announced the official cryptocurrency regulation in Malaysia under the policy paper Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies (Sector 6). The regulator emphasises once again that cryptocurrencies are not a legal tender in Malaysia and reminds the general public that they should still conduct their own due diligence when dealing with cryptocurrencies since there are no established avenues for redress for losses and damages incurred by parties dealing in cryptocurrencies. It is important to note that according to this policy paper geared towards cryptocurrencies being uses a currency and not geared towards regulating ICOs which will likely fall under Securities Commission Malaysia. Bank Negara Malaysia emphasises in this policy paper that reporting organisations i.e exchanges are not allowed to portray itself as a licensed entity under the central bank though they have reporting obligations to the regulator. Under Malaysias cryptocurrency regulation, exchanges are required to conduct adequate risk assessments on their customers in relation to the prevention of money laundering and financing of terrorism. The exchanges are also subject to conduct Customer Due Diligence or better know as Know-Your-Customer (KYC) that are not entirely different from what licensed entities regulated by Bank Negara Malaysia are subject to. In addition to that, should an exchange be making a new cryptocurrency available for trading they are required to submit their risk assessment in relation to money laundering and terrorism financing in writing to Bank Negara Malaysia. The cryptocurrency regulatio Continue reading >>

Malaysia Introduces Cryptocurrency Regulation

Malaysia Introduces Cryptocurrency Regulation

Malaysia Introduces Cryptocurrency Regulation The central bank of Malaysia has introduced a set of guidelines to regulate Bitcoin and other cryptocurrencies. Under the new policy issued by Bank Negara Malaysia (BNM), digital currency exchanges will be subject to the Anti-Money-Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act of 2001. Exchanges will be required to verify their customer's identity, monitor trades and report suspicious activity to regulators. Cryptocurrency exchanges will be required to publish prices and the methodology used to determine them. BNM had issued draft regulations in December with the twin aims of preserving a stable financial system while also thwarting criminal activity related to cryptocurrencies. The new policy was finalized after considering feedback received during the public consultation period on the draft policy. In the wake of surging crypto craze, Governments around the world are actively looking for ways to regulate Bitcoin and other cryptocurrencies. The Malaysian authorities had expressed concern that digital currencies may be used by criminals or terrorist groups for money-laundering or illicit financing, leading to calls for increased transparency and regulation. Malaysia's Financial Intelligence Unit had tracked 346 terrorism-related suspicious transactions in the first half of 2017, that showed the use of financial system for terrorism financing was on the rise in the country. Bank Negara Malaysia had made it clear that cryptocurrencies were not legally accepted payment methods, and hence would not be protected by the country's existing dispute-resolution systems. At least four cryptocurrency exchanges currently operate in Malaysia. Continue reading >>

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