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The Malaysian government has not yet made a decision about what to do with cryptocurrencies. Last year, the country's finance minister warned companies not to issue new tokens, pending advice from the central bank. But the minister of the federal territories of Malaysia declared this week that the government is not sure if the cryptocurrencies are legal or not.
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A legal gray area
Khalid Abdul Samad, minister of the federal territories of Malaysia, said that the use of cryptocurrency is neither "legal nor illegal". The government is still assessing the issue, he added, saying it could not push for a decision. "People have asked me if these currencies are legal or illegal," local media said. "At the moment, the answer is neither legal nor illegal because the situation is not yet clear."
Samad was involved in the invention of the harapan currency – a token invented to raise political funds for the ruling party of Malaysia, Pakatan Harapan, in preparation for the general election of 2019. The central bank of the country, Bank Negara, still has need to approve the initiative.
But despite being a supporter of the crypt, Samad said he could not influence the government either way. He added: "Yes, I was involved in the harapan currency, but I was not appointed as finance minister, but I became a minister of the federal territories, and since the issue is not under my jurisdiction, I can not push too much."
"Implemented" legislation
Malaysia has not been clear on the status of cryptocurrency for some time. Currently bitcoins and other digital currencies are not recognized as legal tender in the country, but since they are not prohibited, the people or companies that trade them are not protected by law. In November of last year, Lim Guan Eng, the finance minister, issued a warning for people and companies not to issue new cryptocurrencies until the central bank issues a legal opinion, saying:
"Do not do it without the Bank Negara guidelines or directive on the matter to avoid doing something wrong and against the law".
He added that the government was open to new forms of virtual money – but only as long as they adhere to the law. Politicians have previously raised concerns about the status of cryptocurrencies in one of the most prosperous economies in Southeast Asia, citing concerns that could pose a threat to the functioning of the national currency, the ringgit.
The way harapan money raised funds without the approval of the country's central bank was also a complaint by a parliamentarian during a parliamentary session. In December, the central bank and the country's tax regulator issued a statement stating that cryptocurrency legislation and initial coin offerings were "implemented".
What do you think about the position of Malaysia on bitcoins and cryptocurrencies? Let us know in the comments section below.
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