Cryptocurrency in Malaysia
Ever since Elon Musk Twitter about Tesla will accept Bitcoin for their transaction, it stirred up a global scale of discussion of cryptocurrency. As much as other countries have been addressing the usage of cryptocurrency. Malaysia’s scene of cryptocurrency is slowly getting attention as well.
Cryptocurrency, in short, is a form of digital currency that comes with a value. In some countries, such as Australia and Japan, cryptocurrency is considered legal and is treated as property. However, you would need to register it with the relevant authority that the government regulates.
So, what about the cryptocurrency’s scene in Malaysia?
Cryptocurrency Scene in Malaysia
Cryptocurrency is regulated under these regulations:
- Capital Markets And Services (Prescription Of Securities) (Digital Currency And Token) Order 2019
- Securities Commission Guideline on Digital Assets
- Securities Commission Guidelines on Recognised Markets
- Anti-Money Laundering And Counter Financing Of Terrorism Digital Currencies (Sector 6)
The definition of digital currency can be found here (insert the link here– The Labuan PDF).
The Example Of A Recognised Market Operator
Luno is an app that is available across 40 countries and Malaysia is among the countries that legalise digital asset exchange use. Luno is one of three digital asset exchanges regulated in Malaysia, allowing investors to buy, sell and store cryptocurrencies.
It is available on the Android play store and Apple store. Hence, it was instead an easy and quick download process for the app.
A user’s experience on using LUNO:
The overall experience on Luno is similar to using an electronic wallet. Such as Touch’n’Go, Grab Pay and Boost. It wasn’t complicated to manoeuvre through the app.
As for the Know Your Customer (KYC) requirements, it was relatively easy to understand. For example, the submission of personal identity documents and live facial recognition (selfie).
Funding to the e-wallet is via either credit card or local bank transfer. It is understandable because it is a regulated financial system to avoid money laundering. Once funds are in, it’s easy to trade and invest, similar to other share market platforms, such as Forex.
All data and transactions are detailed and well-kept in the app. The app upholds its transparency and privacy to its users. However, as a user myself, I would hope that there are more features in future. Such as monthly profit and loss statement for the purpose of declaring income and assets to the Inland Revenue Board Of Malaysia (LHDN).
*Disclaimer: This is not a sponsored content but merely acts as a case study for this article’s purpose. It is merely a personal experience, and it shall not be associate with the firm’s perspective.
The introduction of cryptocurrency in Malaysia gives a taste to fellow Malaysians of current development in the financial world. It is also a reminder that Malaysians’ financial literacy must be improved further to understand cryptocurrency and its possible implementation in our country.
The fact that Malaysia government addressed cryptocurrency and defining it under Capital Markets And Services (Prescription Of Securities) (Digital Currency And Token) Order 2019. It is a sign of acknowledging the increase of cryptocurrency adoption around the world in Malaysia is a start.
Luno is the best example of a kick start journey of the Malaysian’s cryptocurrency implication. The existence of a Recognised Market Operator like Luno opens the floodgate for further potential cryptocurrency of usage in Malaysia.
Ultimately, we should sit tight and look forward to the government coming out with a better public policy on regulating cryptocurrency. So, our country’s national security could be secured and not compromised by it.
By Rahayu Partnership, Malaysia
Law Firm Website: www.rahayupartnership.com