Luno registers with Bank Negara as reporting body for digital currencies

KUALA LUMPUR: Luno Malaysia, which is part of the London-based cyrptocurrency exchange, has formally registered with Bank Negara Malaysia as a reporting institution.

It said on Wednesday the registration was as required by the central bank's policy document on Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) – Digital Currencies requirement.

The policy document sets out the minimum requirements and standards that a reporting institution must observe -- to increase the transparency of activities relating to digital currencies and ensure effective and robust AML/CFT control measures are put in place.

Head of countries for Luno,Vijay Ayyar said in a statement: “We view any steps toward regulation of digital currencies as a very positive sign.

“We will continue engaging with various government agencies to ensure that the industry is well understood and that risks are mitigated. We have been working closely with Bank Negara over the past year and similarly with many other regulators globally”. 

Luno had also started to processing pending withdrawals in Malaysia since March 29. 

In the past, Luno was unable to process withdrawals and deposits due to a temporary freeze on its  Maybank bank account. 

Luno Malaysia country manager David Low said pending withdrawals were being processed in batches, while Luno continues to work on a long-term solution to process both ringgit withdrawals and deposits in Malaysia.    

“Enabling Malaysian customers to have access to their funds is our main priority. We are also testing other solutions for processing both deposits and withdrawals, which will allow us to resume full services in Malaysia,” Low said.