Bank Negara states digital assets not legal tender in Malaysia

he virtual currency, conceived just over a decade ago, fell as low as $3,475 on Sunday, Bitstamp prices show.

KUALA LUMPUR: Bank Negara Malaysia reiterates digital assets are not legal tender in Malaysia and advised the public to carefully evaluate the risks associated with dealings in these assets.

Bank Negara would work with the Securities Commission to implement the regulatory framework for the digital assets to ensure they comply with laws and regulations under the purview of both regulators.

The central bank and the SC had issued a joint press release to provide clarity on the regulatory approach for the offering and trading of digital assets in Malaysia. Digital assets refer to digital currencies and digital tokens. 

“SC will regulate issuances of digital assets via initial coin offerings (ICO) and the trading of digital assets at digital asset exchanges in Malaysia.

“Regulations are currently being put in place to bring digital assets within the remit of securities laws to promote fair and orderly trading and ensure investor protection,” they said in the statement. 

The regulators cautioned ICO issuers and digital asset exchanges which issue or deal with digital assets with a payment function must comply with relevant Bank Negara laws and regulations relating to payments and currency matters. 

ICO issuers and digital asset exchages are subject to SC’s Guidelines on Prevention of Money Laundering and Terrorism Financing.