In the past few months, there have been debates about Cryptocurrency regulation in Malaysia. This has forced the country’s Minister of Finance Lim Guan Eng to come forward and say that it is only the Bank Negara Malaysia (BNM), the country’s central bank has the final decision on the issuance of Cryptos. The recently launched political fundraising platform, Harapan Coin project has attracted support and criticism in equal measure due to a lack of a clear legal framework on Cryptos in the country.
Malaysia’s Central Bank To Rule On Cryptocurrency Issuance
Malaysia’s Minister of Finance Lim Guan Eng has come forward to shed some light on Cryptocurrency regulation in the country. According to the minister, the Bank Negara Malaysia (BNM), the Asian country’s central bank has the final say on the issuance of new Cryptocurrencies in the country. He added that it is only after consulting the apex bank that any Cryptocurrency project may be regarded as legal or not.
The Star, a local news outlet quoted the minister saying that those wishing to issue Bitcoins or any other Cryptocurrency in the country must first check with BNB. He added that the bank has the final say on virtual currencies. The minister was speaking in parliament on Monday while responding to a question from a parliamentarian.
Lim also said that the government is not against Cryptocurrencies. However, he noted that before the launch of any Crypto project in the country, it is worth ensuring all the existing law was being followed. He asked Crypto project leaders to consider BNM’s guidelines and directives on any issue about the new currencies to avoid going against the law.
Intense Debate About Harapan Coin Project
Malaysia’s Federal Territories Minister Khalid Abdul Samad recently launched Haparan Coin Project to help the opposition raise funds. The platform has already been dubbed the world’s first blockchain-based political fundraising project. Although the project has received support from some politicians, it has also come under harsh criticism, especially from pro-government lawmakers.
On Monday, an MP claimed that the project has already raised hundreds of dollars although it has not yet been approved by BNM. Those opposed to the project have claimed that it supports contribution from non-verifiable sources. However, most of those who support this project believe that government supporters are afraid that the new tool will give the opposition the much-needed financial muscle.
BNM Yet To Approve Cryptos In The Country
During the launch of the Harapan Coin Project, Samad announced that they were preparing a proposal to present it to the BNM. The central bank has not yet approved or declined this project although it has already been launched. The parliamentarian has strongly defended the project claiming that virtual currencies are the future.
Samad has said that renowned global investors such as Jack Ma, Alibaba Group founder have said the technology is the future. He is of the opinion that if the technology is used well, the country stands to benefit. According to Free Malaysia Today, the MP said that the Harapan Coin’s value would go up with increased use in government matters and other areas.