• Malaysia’s Communications Ministry has proposed that cryptocurrency be recognized as a legal tender

  • As Malaysians’ interest in cryptocurrencies, particularly bitcoin, develops, the Ministry of Communications and Multimedia of Malaysia proposes that they be adopted. Datuk Zahidi Zainul Abidin, Malaysia’s Deputy Communications and Multimedia Minister, urged on Monday that the Malaysian government legalize cryptocurrencies to assist the younger generation, who have expressed a strong interest in the cryptocurrency business and non-fungible tokens (NFTs).

    Malaysia’s Strategy for Crypto Adoption

    In a Malaysian parliament session on Monday, Malaysian Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin urged the Malaysian government to adopt crypto as legal cash, claiming that it represents the future of finance. He did, however, add:

    “Bank Negara Malaysia and the Securities Commission are in charge of all of this.” We hope that the government would authorize and legalize this so that the youth will be more interested in cryptocurrency.”

    The Deputy Minister was responding to a query from parliamentarian Syed Ibrahim Syed Noh about the government’s stance on trading on NFT platforms, which are becoming increasingly popular among the younger generation.

    Datuk Zahidi Zainul Abidin, Deputy Communications and Multimedia Minister, said the ministry will look into measures to encourage young involvement in cryptocurrencies and NFTs. He believes that the adoption of cryptocurrency is a critical step in Malaysia’s growth in the expanding business.

    The Government of Malaysia’s Position on Cryptocurrencies

    The Malaysian government has maintained its anti-crypto policy, although it has permitted crypto exchanges like as Luno, Huobi, and Kraken to operate legally in the nation.

    Furthermore, Malaysia indicated interest in the Bank of International Settlements’ (BIS) Project Dunbar, which aims to evaluate the use of CBDCs for international settlements via a common platform involving nations such as Australia, Singapore, and South Africa.

    In a recent parliament session, Malaysian Deputy Finance Minister Yamani Hafez Musa stated that cryptocurrencies are not regulated by Bank Negara Malaysia, the country’s central bank, for payment purposes. He also added the following:

    “Digital assets like bitcoin and ethereum are not appropriate as payment instruments… Digital assets are not a suitable store of value or a good medium of trade in general.”

    Malaysia, on the other hand, has a high rate of crypto adoption, particularly among the younger population, with many people dealing in crypto and NFTs. Although several lawmakers are considering the advantages of cryptocurrency in financial innovation, the final decision appears to be in the hands of parliament.

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