Malaysia’s central bank promulgated a draft law on cryptocurrencies

nBankruptcy: Recently, financial regulators in many countries are accelerating the development of regulations for the regulation of cryptocurrencies, hoping to better control the development of this market and take advantage of its advantages. At present, the Bank of Malaysia has released a draft law that aims to standardize the activities of cryptocurrency exchanges and protect the rights and interests of ordinary investors. We may see similar initiatives in more countries in the future.n
nTranslation: Inan
The Malaysian Central Bank released a new draft law for the confidential currency exchange that operates locally.n
On Thursday, the Malaysian Central Bank announced the move on its website to engage the public in an effort to reduce concerns about the use of cryptocurrencies for money laundering and terrorist financing.n
After several months of hard work, the draft law required companies to verify their clients’ identities, monitor transactions and report suspicious behavior to Malaysian authorities. In addition, these companies must also report user data to the central bank.n
If these regulations are approved, they will apply to any person or company acting on behalf of another person for crypto currency transactions. Although these laws endorse the use of cryptocurrencies by companies, Malaysian authorities do not currently recognize cryptocurrencies as legal.n
The proposed rule reads:n
n”Therefore, we recommend that the public conduct due diligence and evaluation of any potential risks when dealing with entities that cryptocurrencies or provide related services.”n
nAccording to the announcement, Bank Negara Malaysia will receive written feedback on these proposed regulations by January 14.n
Last month, Muhammad Ibrahim, the bank’s governor, explained that the rules were a tool to prevent illegal remittances. Although these rules apply only to exchanges, the securities regulator in Malaysia is also considering a common framework for cryptocurrencies.n

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