Malaysia issues draft regulations for crypto currency businesses

KUALA LUMPUR (Reuters) – Malaysia’s 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.

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.

Malaysia’s 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 Korea’s government called an emergency meeting earlier this week to discuss the trading of crypto currencies and measures on the market were to be announced on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.