Jul 272 mins read

Bank Negara Malaysia Releases Regulatory Draft on Cryptocurrency Exchanges

New regulatory draft aims to combat money laundering and terrorism financing risks in Malaysia

Bank Negara Malaysia Releases Regulatory Draft on Cryptocurrency Exchanges

The Central bank of Malaysia, Bank Negara Malaysia (BNM), has released a new regulatory draft regarding cryptocurrency exchanges. The draft aims to combat money laundering, terrorism financing risks associated with cryptocurrency use, and increase transparency in digital currency activity in Malaysia.

The Bank's governor, Muhammad Ibrahim, had previously stated plans to release regulatory guidelines on cryptocurrency before year-end. The draft proposes that those entities providing digital currency services as defined in the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 must fulfill certain legal requirements, demands, and standards as reporting institutions.

Reporting Obligations and Transparency

Cryptocurrency exchange operators must comply with reporting obligations, including transparency obligations, to declare the details of their operations to banks. They must verify customer identity, monitor cryptocurrency transactions, and report suspicious activities to Malaysian authorities.

money-laundering Image Source: Unsplash

No Permission, Licensing, Recognition or Verification by BNM

The Bank made it clear that reporting obligations do not mean permission, licensing, recognition or verification of digital currency by the BNM.

digital-currency Image Source: Unsplash

Overall, this regulatory draft enhances the security of cryptocurrency exchanges and helps to prevent money laundering and terrorism financing risks in Malaysia.

Recommending Due Diligence for Handling Digital Currency

The Central Bank of Malaysia recommends that citizens conduct necessary due diligence on entities involved in handling digital currency and providing related services to assess the risks involved.

Digital Currency

The draft proposal is open for public feedback, and the Central Bank of Malaysia welcomes written opinions until January 14, 2018.

Collaboration with Blockcast

Blockcast is a dedicated platform for discovering and organizing content related to blockchain technology. We welcome any cooperation and suggestions related to blockchain and our website.

Blockchain Technology

Please contact us at for any collaboration or suggestions.