Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, is spearheading an initiative to incorporate cryptocurrency and blockchain technology into the country’s financial systems. The objective is to position Malaysia as a regional leader in financial technology (fintech).
During a recent three-day visit to Abu Dhabi, Anwar met with officials from the United Arab Emirates (UAE) and with Binance co-founder Changpeng Zhao (CZ) to discuss strategies for cryptocurrency adoption. He underscored the need for Malaysia to innovate and remain competitive, mirroring the UAE’s success as a global fintech hub.
Anwar announced that Malaysia’s Treasury, Securities Commission, and Bank Negara Malaysia will evaluate the policy framework for cryptocurrency and blockchain to ensure effective regulation and public safety. He believes Malaysia can replicate the UAE’s accomplishments by leveraging Binance’s expertise in advancing digital finance.
“This is not just about approval but expediting transformation,” Anwar stated, highlighting the ambition for a modern financial system. His plan includes developing talent, enhancing industry skills, and fostering a supportive environment for digital finance.
A cabinet paper on blockchain policy is currently in development, signifying Malaysia’s commitment to aligning with global trends in digital finance. This initiative is anticipated to spur economic growth and bolster Malaysia’s position in the blockchain ecosystem.
In Malaysia, the Securities Commission (SC) regulates cryptocurrency, classifying digital assets as securities. While cryptocurrencies are legal, they are not recognized as official currency by the central bank. Businesses operating in the crypto sector must comply with Malaysia’s income tax laws to ensure adherence with local regulations.
