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Malaysia won’t recognize crypto as legal tender, says Deputy Finance Minister

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TL;DR Breakdown

  • Malaysian Deputy Minister says that cryptocurrencies are not legal tender and therefore not valid financial option
  • He also mentioned that they may be looking into regulating them in the future

Malaysian Deputy Minister Il Yamani Hafez Musa has argued that cryptocurrencies don’t possess the properties of a universal currency, and so they won’t be recognized as currency in the country.

“Cryptocurrencies are not recognized as legal tender in Malaysia. This is because cryptocurrencies, or virtual currencies, do not exhibit characteristics of money,” the minister said. “They (cryptocurrency) are also not backed by any assets. Nor do they have central issuers like banks or monetary authorities.”

The Deputy Minister went on to say that while the government is still studying the possibility of issuing a national virtual currency, there are no immediate plans to do so. He further explained that cryptocurrencies don’t have a central issuer, they’re not legal tender and are not backed by any assets. He also said that cryptocurrencies are highly volatile and prone to speculation.

Cryptocurrencies impact on Malaysia

This news comes as a disappointment to many in Malaysia who were looking forward to using crypto as an alternative way to store and transact value. Nevertheless, it is good to see that the Malaysian authorities take a cautious approach to this new technology.

Crypto has been in the news a lot lately, with prices soaring and crashing more rapidly than ever before. Malaysia’s Deputy Finance Minister has now weighed in on the matter, stating that cryptocurrencies don’t exhibit the characteristics of a valid currency.

While the Malaysian government has yet to announce any official stance on crypto, this latest comment from a high-ranking member of the government is likely to add more fuel to the fire. It remains to be seen how Malaysia will deal with this growing issue in the coming months and years. For now, it seems that cryptocurrencies are still very much in a grey area.

Speaking at a conference in Kuala Lumpur, the Deputy Minister said that cryptocurrencies don’t have a central issuer, they’re not backed by any assets, and they’re not accepted by all businesses. He also pointed out that their prices are highly volatile, making them unsuitable for use as a currency.

Is Malaysia planning to regulate cryptocurrencies?

The Malaysian government has been taking a cautious approach to cryptocurrency, and the Deputy Minister’s comments are in line with that. Malaysia is not currently planning to regulate cryptocurrencies, but they are also not encouraging their use. It remains to be seen how the country will deal with this issue in the future, but for now, it seems clear that they are not ready to embrace digital currencies.

It’s worth noting that other countries, such as Japan and Singapore, have taken a more positive approach to cryptocurrencies. They’ve recognized them as legal tender, and have set up frameworks to regulate and tax them. This has helped to legitimize cryptocurrencies and attract more investors.

John Lincoln

John Lincoln

Lincoln contributes blockchain and crypto perspectives that meet the industry's selective information needs in a timely, undiluted fashion. His greatest wish is to share transformational technology through an engaging and easy-to-read style, making complex topics accessible to all.

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