Malaysia Finance Minister Urges Crypto Developers to Push Pause Pending Central Bank Approval

The Finance Minister of Malaysia has told potential crypto platform developers to temporarily shelve their plans as the country awaits feedback from its central bank.

While CIMB bank in Malaysia is hoping to enjoy the technological fruit of Ripple’s labor, the country’s Finance Minister, Lim Guan Eng, has warned against crypto developers creating new virtual currencies or platforms. Well, at least until the country’s central bank gives the go-ahead.

Crypto Growth on Hold in Malaysia

According to The Star, the minister advised:

We need to be cautious as Bank Negara is the authority that handles and manages all forms of new currency technology. I am certain that there are those trying to introduce their own mechanism. This is where I wish to advise all parties, no matter who they are, intending to issue bitcoins or cryptocurrency, that they must refer to Bank Negara which is the authority that will have the final say on this new form of currency.

Lim made the statements while answering questions at parliament. He added that while the government was by no means against digital currencies being issued, he admitted that more research needs to be conducted by the central bank. However, he stated that any new cryptocurrencies need to be developed and introduced within legal parameters, saying:

Don’t do it without Bank Negara’s guidelines or directive on the matter to avoid doing something wrong and against the law.

Tricky Questions

However, a member of the Rembau constituency in Malaysia, Khairy Jamaluddin, questioned whether a new coin had already received approval from the central bank. The Harapan Coin, according to Federal Territories Minister Khalid Samad, is touted as being the first blockchain-based platform to be used for political fundraising.

Khalid had said that the proposal for this initiative still has to be presented to the central bank. However, the platform’s website shows that fundraising is already happening. According to MalayMail, Khairy asked:

According to the site, the coin is traded at a rate of US$45 (RM188) per 100 units. As much as US$772 has been successfully collected. Is this (project) being operated illegally as Bank Negara Malaysia has not approved (of the cryptocurrency)?

It is unclear if Khairy received an answer to his question.

Earlier this year, Live Bitcoin News reported that Bank Negara had issued new policies relating to cryptocurrencies, money laundering, and terror financing. The bank also reiterated that crypto is not seen as legal tender. It is unclear if this will change after the bank’s latest round of research is concluded.

Do you think that Malaysian authorities will soon view virtual currencies as a legal medium of exchange? Let us know in the comments below!

Images courtesy of Pixabay and Shutterstock.

Source: Read Full Article