PETALING JAYA: Malaysia is encouraging the growth of digital assets, seeing them as an emerging pillar of the financial system, said Gobind Singh Deo (pic).
The Digital Minister said this during the launch of the Luno Institutional Digital Asset Conference at a hotel in Petaling Jaya on Thursday (Sept 25).
“There has been a significant push by most countries, including Malaysia, to develop digital platforms, and we will see a huge spike in transactions as we move ahead,” he said.
Gobind added that digital assets are maturing from a concept to a niche product into what is now a significant pillar of the financial system.
“However, for Malaysia, this represents an opportunity to build a future-ready digital economy, aligned with our national digital policies. Digitalisation has always been at the core of our national agenda,” he said.
“Under the Financial Sector Blueprint 2022-2026, Malaysia is positioning itself as a forward-thinking nation ready to embrace digital finance innovations, where digital assets will play a key role in the evolution of financial markets,” added Gobind.
He said that in 2019, Malaysia became one of the first countries in the region to regulate the digital asset industry.
“This ensured Malaysians could access digital assets safely and securely while allowing the industry to grow in a regulated environment,” he added.
Gobind then said that clear guidelines to regulate digital asset exchanges were introduced through the Malaysia Securities Commission Recognised Market Operator (RMO) framework.
“We continue to strengthen this regulatory landscape with a clear focus on ensuring security within responsible innovation,” he said, adding that nearly two million Malaysians to date have safe access to digital assets,” he added.
With that, the minister said long-term and sustainable growth in the digital assets industry needs governance, capital and innovation from established financial institutions to drive it forward.
“Two key elements that can encourage digital asset adoption are trust and interoperability. We have clear legal and regulatory frameworks to build trust and prevent misuse. However, trust must be earned,” said Gobind.
He added that as such, more efforts must be carried out to win the hearts and minds of users, ensuring that our digital space is safe, secure and trusted.
“Besides trust, consumers today also expect a seamless digital experience. Thus, it is crucial to have interoperability standards that will ensure the smooth integration of digital asset systems.”
“This will result in compatibility with existing payment systems and mobile wallets,” he added.
“With digital currencies, decentralised finance and blockchain technology driving innovation, digital assets are now a growing asset class that must be embraced for long-term sustainability,” said Gobind.
He added that Malaysia is well placed to become a major player in digital assets, and with national plans such as the AI Nation Framework and the Financial Sector Blueprint, it is pushing technologies like blockchain, AI and digital assets into the country’s financial system.
