Malaysian government calls for legalisation of cryptocurrency use

The Malaysian Ministry of Communications and Multimedia (K-KOMM) has urged regulators to develop a legal framework for the legitimate circulation of Bitcoin and other cryptocurrencies. My Metro reports.

Speaking before Parliament, Deputy Minister Zatuk Zahidi Zainul Abidin noted that digital currencies fall under the remit of Bank Negara Malaysia and the Securities Commission.

The ministry, he said, will seek ways to facilitate young people using crypto assets, including NFTs.

“We hope that the government will be able to and will attempt to legalise this, so that we can broaden youth participation in cryptocurrencies and help them,” the official said.

He was responding to a question from a member of parliament about the stance of the cabinet and K-KOMM regarding the growing popularity of NFT trading platforms in the country.

The cryptocurrency and digital tokens law was enacted in 2019. The regulator also registered the first three digital asset exchanges (DAX) at that time.

In 2020, Binance, operating in the country without a licence, came under the Securities Commission’s scrutiny. In 2021, the agency announced enforcement measures against the exchange for illicit handling of the DAX.

Authorities of the country continue to combat illegal mining of cryptocurrencies, closely linked to electricity theft.