Central Bank of Malaysia Plans Cryptocurrency Reporting Rules

The governor of Malaysia's central bank has provided more detail on upcoming regulations aimed to counter the illicit uses of cryptocurrencies.

AccessTimeIconNov 22, 2017 at 2:00 p.m. UTC
Updated Sep 13, 2021 at 7:11 a.m. UTC

The governor of Malaysia's central bank, Bank Negara Malaysia (BNM), has provided more detail on its upcoming regulatory framework aimed to counter the illicit uses of cryptocurrencies.

In statements made today at a counter-terrorism financing summit, BNM governor Muhammad Ibrahim said the new rules are being drawn up to combat the financing of money-laundering and terrorism in the country.

According to a Reuters report, Ibrahim set out that, under the framework, those who convert digital currencies into conventional money will be termed as "reporting institutions" from next year, under the country's anti-money laundering and anti-terrorism financing act.

Reporting institutions are obliged by law to take preventive measures, such as submitting suspicious transaction reports, to avoid acting as a channel for illicit money transmission.

Ibrahim added:

"This is to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system."

Although the governor did not reveal a precise timeline for finalizing the new regulations, it has been drafting the plan since last September.

Earlier this month, Malaysia's securities regulator, Securities Commission Malaysia, also revealed it is planning a regulatory framework for cryptocurrencies. Aimed at "market integrity and investor projection," the agency indicated that it is working with central bank during the process.

Muhammad Ibrahim image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.