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Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim, has initiated a debate on possible cryptocurrency rules intended to enhance the country’s financial sector. Following a three-day official visit in Abu Dhabi, he disclosed that he held meetings with the authorities of the United Arab Emirates (UAE) and Changpeng “CZ” Zhao, the co-founder of Binance. This meeting centered on cryptocurrencies, blockchain technology, and the potential for digital financial innovations.
Ibrahim stressed the importance of Malaysia embracing policies favorable to international financial systems. He referred to the shift as “a radical departure from the old ways,” suggesting that he wants to adopt modern digital financial systems. The discussions also included topics on data centers and artificial intelligence which are digital transformations of the economy.
Collaborating with UAE to Develop Crypto Policies
The Prime Minister said the country plans to engage with the UAE authorities to help shape Malaysia’s approach to crypto regulation. He stated that the UAE can help Malaysia establish policies regarding the cryptocurrency industry. The UAE’s growth in the sector puts it in a vantage position to help navigate the difficulties of adopting cryptocurrency.
Ibrahim’s call for reform clearly indicates that the financial sector needs to move with the trends being adopted worldwide. He noted that digital finance, like AI, can revolutionize potential innovation in the financial world, and Malaysia should not miss the opportunity to be among the pioneers. Moreover he directed several government departments and agencies, such as the Treasury, Securities Commission, and Bank Negara Malaysia, to study integrating cryptocurrencies into the existing system.
Challenges and Government Plans for Implementation
Malaysia is still drafting policies related to digital assets. The government acknowledges the issues connected with the industry’s development. Ibrahim explained that further discussions and research will be conducted before any policy change is made. The Malaysian government has realized that personnel training, expertise development, and the involvement of industry stakeholders will play a vital role in implementing these regulations.
He also stressed the importance of protecting the interests of the Malaysian people by preventing financial leakages and creating regulations that will protect investors. The government aims to draft a policy paper on digital assets and bring it before the cabinet for ratification. When the policy is finalized, it will be an important step toward including digital assets in Malaysia’s financial system.
In December 2023, the Malaysia’s Securities Commission blocked Bybit, a leading crypto exchange, for conducting its activities without the required permit. This action showed the country’s intention to regulate digital assets activities and ensure a secure platform for investors.