Digital currency transactions average RM75mil a month

BANK Negara recorded an average transaction of RM75mil per month in digital currency last year, although it was not recognised as legal tender in the country, reveals the Finance Ministry.

The central bank also did not have any plans to recognise Bitcoin or other digital currency at the moment, the ministry said in a written reply to the Dewan Rakyat.

The ministry said Malaysians who were using digital currency were doing it at their own risk and that they were not protected by consumer laws in the country.

“The public is reminded to be aware of the risks involved in digital currency transactions,” the ministry added.

It was responding to a question by Budiman Mohd Zohdi (BN-Sungai Besar) on the statistics on cryptocurrency scams in the country.

The ministry said individuals or companies involved in cryptocurrency trading would be classified as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) since Jan 2 this year.

Past reports noted that reporting institutions are required to provide detailed information on buyers and sellers of such currencies.

“The mandatory reporting is meant to ensure steps are taken to minimise the risk of money laundering and terrorism funding using digital currency, as well as to increase transparency in digital currency transactions,” said the ministry.