Malaysia to strictly regulate exchange of cryptocurrencies into cash

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Malaysia’s central bank said it will view the conversion of cryptocurrency into cash as an act to be handled under anti-money laundering and counter-terrorism laws. Online exchanges or other firms converting digital into real money for clients would be designated as “reporting institutions” under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 from 2018.

Reporting institutions are required by law to undertake preventive measures to protect their business from being used as a conduit for money laundering and terrorism financing activities.

Central bank governor Muhammad Ibrahim said the move was aimed at preventing the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of financial system.

“We need to prepare ourselves, as, according to many pundits, digital currencies will become the new norm,” he said in a speech at the Third Counter-Terrorism Financing Summit 2017 in Kuala Lumpur on November 22.

“As authorities, we cannot be oblivious to these developments,” he noted, adding that “there is no doubt that rapid technological developments have offered immense potential for economic growth. Unfortunately, they have also spawned new ways for terrorist organisations to acquire, move and manage their funds.”

The new regulations would come into effect by next year, but no date has been given.

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Reading Time: 1 minute

Malaysia’s central bank said it will view the conversion of cryptocurrency into cash as an act to be handled under anti-money laundering and counter-terrorism laws. Online exchanges or other firms converting digital into real money for clients would be designated as “reporting institutions” under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 from 2018.

Reading Time: 1 minute

Malaysia’s central bank said it will view the conversion of cryptocurrency into cash as an act to be handled under anti-money laundering and counter-terrorism laws. Online exchanges or other firms converting digital into real money for clients would be designated as “reporting institutions” under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 from 2018.

Reporting institutions are required by law to undertake preventive measures to protect their business from being used as a conduit for money laundering and terrorism financing activities.

Central bank governor Muhammad Ibrahim said the move was aimed at preventing the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of financial system.

“We need to prepare ourselves, as, according to many pundits, digital currencies will become the new norm,” he said in a speech at the Third Counter-Terrorism Financing Summit 2017 in Kuala Lumpur on November 22.

“As authorities, we cannot be oblivious to these developments,” he noted, adding that “there is no doubt that rapid technological developments have offered immense potential for economic growth. Unfortunately, they have also spawned new ways for terrorist organisations to acquire, move and manage their funds.”

The new regulations would come into effect by next year, but no date has been given.

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