Malaysia is contemplating the introduction of legislation to govern the cryptocurrency and blockchain sector, enabling the country to stay abreast of developments in other jurisdictions, according to Prime Minister Datuk Seri Anwar Ibrahim, who made the announcement during a visit to Abu Dhabi. The Prime Minister revealed that he had proposed an exploratory study several months prior, which involved various agencies, including security, treasury, and Bank Negara, to examine the potential benefits and risks associated with this emerging technology. "By ensuring that the sector is properly regulated, we can protect the interests of our citizens and prevent potential losses," he stated, as reported by the New Straits Times on Tuesday. Anwar disclosed that he had engaged in discussions with the Abu Dhabi government and the Binance cryptocurrency exchange regarding policy proposals.
He noted that the UAE leaders are keen to establish a collaborative relationship with Malaysia on this matter, and he expressed his inclination to not only approve but also expedite the regulatory process. Malaysia has previously explored the potential of digital technologies.
In 2023, the country participated in a study with the Bank for International Settlements and other central banks, which found that cross-border central bank digital currency payments are feasible. Additionally, in 2022, Malaysia announced plans to establish a national blockchain infrastructure.
However, the country has also taken a firm stance against crypto companies operating illegally within its borders. In 2021, Binance was ordered to cease its operations in Malaysia, and in 2023, Huobi Global faced similar action.
Attempts to contact the Prime Minister's office for further information were unsuccessful.