Reportedly, the Malaysian government is still undecided whether to legalize cryptocurrencies, local media in the English language New Straits Times reports January 12.
Khalid Abdul Samad, minister of Malaysian federal territories, said that by answering a question about whether digital currencies are currently legal or illegal:
"At the moment, the answer is neither legal nor illegal because the situation is not yet clear."
Samad also pointed out that while he was involved in the launch of Harapan Coin (HRP) – a proposal for a political cryptocurrency – he was not appointed as Finance Minister, pointing out that the issue does not therefore fall within his jurisdiction.
In December 2018, as reported by Cointelegraph, the regulatory authority and the central bank of Malaysia issued a joint statement in which they confirmed that they were instituting regulations on cryptocurrency and initial money supply (ICO) activities.
Samad would also have previously proposed to Bank Negara Malaysia and Prime Minister Tun Dr Mahathir Mohamad to use the digital currency, Harapan's currency, for government transactions.
However, as Cointelegraph reported in November last year, a Malaysian member of parliament had urged the government to implement the cryptocurrency regulations before embarking on Harapan Coin's cryptocurrency project.
Cointelegraph explained in a dedicated analysis in December 2018 that as much as 30% of the funds raised for the project were intended for system administrators, who remain effectively anonymous.