Malaysia central bank warns of Bitcoin

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IMG_1388Malaysia’s central bank has voiced concern about the virtual currency Bitcoin on January 3 but stopped short of banning the virtual currency, Dow Jones reported.

“Bitcoin is not recognised as legal tender in Malaysia,” Bank Negara Malaysia said in an announcement. “The public is therefore advised to be cautious of the risks associated with the usage of such digital currency.”

The announcement by the central bank highlighted regulatory fears about Bitcoin and the lack of legal protection for ordinary people as the virtual money exists only in cyberspace and is not backed by any central bank or government.

The UK, Denmark, China and Thailand were among the countries whose central bank officials have voiced concerns about the potential for money laundering and speculative trading with Bitcoin. Chinese regulators, alarmed at Bitcoin’s potential to skirt the country’s capital controls, took a hard line last month and banned third-party payment service providers from using Bitcoin for transactions.

The clampdown in China may have taken the wind out of Bitcoin’s rise in value, but demand for the virtual currency is still rising, particularly in markets where consumers are increasingly turning to mobile devices and computers for online purchases.

For example, in Singapore 16 retailers accept the cryptocurrency, according to CoinMap, a website that tracks physical companies and vendors accepting bitcoin.

Malaysia’s sole merchant listed on CoinMap is shared workspace Nook Malaysia, allowing customers to pay for everything from a cup of coffee to office services in Bitcoin since November 2013.

The value of Bitcoin is down from an all-time high of $1,233 in December 2013 to $846.80 on January 3. Over a year ago, 1 Bitcoin sold at $13.50, according to Tokyo-based main Bitcoin exchange website MtGox.

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Reading Time: 1 minute

Malaysia’s central bank has voiced concern about the virtual currency Bitcoin on January 3 but stopped short of banning the virtual currency, Dow Jones reported.

Reading Time: 1 minute

IMG_1388Malaysia’s central bank has voiced concern about the virtual currency Bitcoin on January 3 but stopped short of banning the virtual currency, Dow Jones reported.

“Bitcoin is not recognised as legal tender in Malaysia,” Bank Negara Malaysia said in an announcement. “The public is therefore advised to be cautious of the risks associated with the usage of such digital currency.”

The announcement by the central bank highlighted regulatory fears about Bitcoin and the lack of legal protection for ordinary people as the virtual money exists only in cyberspace and is not backed by any central bank or government.

The UK, Denmark, China and Thailand were among the countries whose central bank officials have voiced concerns about the potential for money laundering and speculative trading with Bitcoin. Chinese regulators, alarmed at Bitcoin’s potential to skirt the country’s capital controls, took a hard line last month and banned third-party payment service providers from using Bitcoin for transactions.

The clampdown in China may have taken the wind out of Bitcoin’s rise in value, but demand for the virtual currency is still rising, particularly in markets where consumers are increasingly turning to mobile devices and computers for online purchases.

For example, in Singapore 16 retailers accept the cryptocurrency, according to CoinMap, a website that tracks physical companies and vendors accepting bitcoin.

Malaysia’s sole merchant listed on CoinMap is shared workspace Nook Malaysia, allowing customers to pay for everything from a cup of coffee to office services in Bitcoin since November 2013.

The value of Bitcoin is down from an all-time high of $1,233 in December 2013 to $846.80 on January 3. Over a year ago, 1 Bitcoin sold at $13.50, according to Tokyo-based main Bitcoin exchange website MtGox.

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