Home News Bank Negara Issues Draft Regulations for Cryptocurrency Exchanges

Bank Negara Issues Draft Regulations for Cryptocurrency Exchanges

December 15, 2017 16:26
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Malaysia’s central bank, Bank  Negara on Thursday has issued a draft regulations bill for cryptocurrency exchanges that operate in the country. But, it has maintained its earlier view of not to make cryptocurrencies a legal tender in the country.

The draft of guidelines has been published on its website for due public consideration. In the draft regulation bill, the exchanges have been designated as reporting institutions under the provisions of Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA).

“The proposed policy sets out the legal obligations, requirements and standards that digital currency exchanges, which will be defined under the First Schedule of the AMLA, must carry out as reporting institutions,” Bank Negara Malaysia (BNM) said in a statement.

Last month, the Central Bank Governor Muhammad Ibrahim has said that the bank has started a discussion on to frame guidelines for cryptocurrency exchanges to bring them under the regulatory purview and introduce the same in early 2018. The guidelines will help in to make cryptocurrency trading more transparent which is often marred by the controversy over money laundering and terrorism financing charges.

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