Cryptocurrencies Not Recognised As Currency By Malaysian Government

Cryptocurrencies may not be recognised for day-to-day transactions, but BNM is still looking to the viability of their own digital currency.
(Credit: MalayMail).

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After the Dewan Rakyat session today, the government has come to a decision that cryptocurrencies such as Bitcoin and Ethereum are not recognised as currency for day-to-day transactions.

Deputy Finance Minister, Yamni Hafez Musa stated that cypto are not a payment method that is regulated by Bank Negara Malaysia (BNM).

Cryptocurrencies are not suitable for use as payment instruments because these currencies do not show the universal characteristics of money.

Yamani Hafez Musa

Musa said they are not good mediums of exchange, they are vulnerable to price fluctuations, there are cybersecurity threats involved and there is a lack of scalability, in regards to Sibuti MP, Lukanisman Awang Sauni’s question of cryptocurrency usage.

He then said digital assets can be issued by companies for fundraising purposes, however they are subjected to the issuer meeting the standards set by the Securities Commissions (SC), under the Capital Markets and Services (Securities Determination) (Digital Currency and Digital Tokens) Order 2019.

Even though cyrpto is not recognised in the country, BNM is looking into the viability of issuing a central bank digital currency (CBDC).

(Credit: Executium/Unsplash).

Recently, the Indonesian Ulama Council (MUI) issued a fatwa banning cryptocurrencies, but BNM and SC’s Chairman of The Shariah Advisory Body, Datuk Mohd Daud Bakar disagree with the fatwa.

Mohd Daud says crypto is the new form of commodity useful for investment, further stating it falls under harus to buy and is allowed to be kept and sold in the future when prices rise.

He also equates crypto to points redemption.

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