Malaysia: New cryptocurrency regulation in 2018

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The Malaysian central bank, BNM, will be issuing a new initiative in order to regulate the use of cryptocurrencies in the country in early 2018. The bank will place reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 from 2018.

BNM governor, Muhammad Ibrahim has stated that the strategy was aimed at prohibiting the abuse of the system for unlawful and criminal activities and maintaining the integrity and stability of the financial system. The governor also went on to say that the introduction of artificial intelligence (AI), big data technology and machine learning were tools that may be essential due to suspicious transactions becoming more and more intricate and complex therefore are harder to detect.

At the Third Counter-Terrorism Financing Summit 2017 in Kuala Lumpur, the governor stated that “we need to prepare ourselves, as according to many pundits, digital currencies will become the new norm,’ on Wednesday the 22nd of November.