Malaysia does not want to “be left behind” and is preparing to regulate bitcoin

After holding talks with Binance founder Changpeng Zhao and leaders of the United Arab Emirates, Malaysian Prime Minister Anwar Ibrahim is taking steps to regulate the bitcoin (BTC) ecosystem and other cryptocurrencies in the Asian country.

According to information published by the New Straits Times, the meetings took place during a three-day official visit that the Malaysian leader made to Abu Dhabi, the capital of the United Arab Emirates. The talks focused on modernizing Malaysia’s financial system, through cryptocurrency-friendly policies.

The Prime Minister believes Malaysia needs to keep up with rapid advances in digital finance. “This is an evolution that is happening quickly and requires us to be equally fast,” he said, adding his willingness for Malaysia “not to be left behind by remaining mired in an old financial system.”

In that sense, The United Arab Emirates, together with Zhao (who resides in that country), have offered to work closely with Malaysia to develop its regulatory strategy. This collaboration could help the country establish a framework that aligns with global financial trends and addresses the needs and concerns of local bitcoiners.

In particular, Binance, as the world’s largest cryptocurrency exchange platform, is expected to provide valuable experience in the development of those regulations.

The proposed changes would require extensive studies by multiple government agencies, such as the Malaysian Treasury, the Securities Commission and Bank Negara Malaysia, all of which would need to conduct extensive reviews to address the possible risks and challenges in implementing new cryptocurrency regulations. Despite this, the prime minister promised to draft a document on the subject to submit it for approval of the cabinet.

“We have to train our staff, develop competencies and get actors involved,” the official explained, highlighting the need for a comprehensive approach to its implementation.

The list of those who leave the prohibitions behind grows

The move to regulate bitcoin comes at a time when Malaysian authorities have been actively monitoring the cryptocurrency sector. Regulators constantly send alerts to investors about companies in the ecosystem, where they mention platforms such as Paxful, KuCoin and MEXC.

Securities Commission Malaysia guidelines state that cryptocurrencies are neither legal tender nor a payment instrument recognized by the central bank (Bank Negara Malaysia). Neither There are laws that regulate cryptocurrencies. A situation that also affects the legality of Bitcoin miners, who on several occasions have experienced the seizure and destruction of equipment.

However, as bitcoin has gained global recognition, the country’s authorities have been changing their stance. In March 2022, Zahidi Zainul Abidin, who was a former deputy minister at the Ministry of Communications and Multimedia, suggested that Malaysia should adopt bitcoin and other cryptocurrencies as legal tender. “We hope the government can allow it,” said Zahidi in Parliament.

This is a new favorable stance that already has the support of Malaysia’s religious authorities, such as the Securities Commission’s Sharia Advisory Council. This organism has recognized to digital currencies as a valid form of property from an Islamic perspectivefurther legitimizing its use within the country’s predominantly Muslim society.

In this way, Malaysia joins the wave of countries that in recent years have been eliminating the strict prohibitions that they had been applying to cryptocurrencies. The most recent cases of Bolivia and Kenya are emblematic. Both countries They have done a 180 degree turns in its policy on cryptocurrencies, as reported by CriptoNoticias.

Portal data Coin Dance They report on the growth of countries that are removing restrictions on trade with bitcoin and other cryptocurrencies and are working on regulations, since it is estimated that the digital currency now completely legal in over 111 countries.