[UPDATED] Futile for govt to control decentralised crypto: deputy minister

KUALA LUMPUR – Currently, the government has no plans to regulate cryptocurrencies, given their decentralised nature.

Deputy Minister in the Prime Minister’s Department (Economy) Datuk Eddin Syazlee Shith explained to the Dewan Rakyat today that it is futile for Putrajaya to draft new laws to control the cryptocurrency trade.

“The nature of the currency is that it is decentralised, so it is difficult for us to control it,” Eddin Syazlee said.

Moreover, via the Securities Commission (SC), Eddin Syazlee said the government has classified cryptocurrencies as a form of security.

This, he added, is to give guidance to investors to understand the nature of their cryptocurrency investments.

“To make specific laws to regulate (cryptocurrencies) is difficult, given its nature,” Eddin Syazlee said.

The deputy minister was questioned by Cha Kee Chin (Rasah-PH) over the government’s stance on this new form of virtual currency.

Given the popularity of cryptocurrency these days, Cha queried whether the government is ready to regulate these new currencies to prevent Malaysians from suffering further losses.

While economists said there are more than 1,000 cryptocurrency companies operating across the world, with active trading reaching billions in volume, issues relating to the emerging industry’s legality continue to dog Malaysian authorities.

At present, cryptocurrency is not recognised as legal tender – money – in the country. One of the key features of cryptocurrency is that it is not issued by the central bank of any nation.

The online-generated feature of these digital assets is exactly what makes cryptocurrencies – such as bitcoin, ethereum, and ripple – not recognised as money in Malaysia.

Last year, the government had reportedly said that cryptocurrencies would not be banned.

“It is not the intention of the authorities to ban or put a stop to any innovation that is perceived to be beneficial to the public,” the Finance Ministry had said.

With the government regulating digital asset exchanges, it is advisable for individuals seeking to invest in cryptocurrencies to enlist with those recognised by the SC.

Additionally, those seeking to establish a digital asset exchange to trade bitcoin and other cryptocurrencies in Malaysia must comply with SC regulations that require exchanges to have robust measures in place to protect users and their assets. – The Vibes, December 13, 2021