Malaysia draw up framework for cryptocurrencies

Malaysia has initiated work on a regulatory structure for digital currencies as bitcoin
22 November 2017   279

Governor of the Central Bank of Malaysia stated that from next year those converting cryptocurrencies into conventional currency will be designated as “reporting institutions” in accordance with the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.

The central bank also reports that institutions are bound by law to undertake preventive efforts to avoid their firms from being used as a channel for money laundering and terrorism financing activities.

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

 

Tan Sri Muhammad bin Ibrahim

Governor of the Central Bank of Malaysia

However, the date of regulations implementation has not been announced yet.

UK launches an inquiry into cryptocurrencies

The inquiry by UK Treasury Select Committee will examine the risks and possible benefits of crypto for investors
22 February 2018   10

European governments are quite cautious about cryptocurrencies and investments into them. And the regulatory base is as of now a lot more sparse, than one in America and Asia. But UK has announced that the Treasury Select Committee is launching an inquiry into cryptocurrencies and the distributed ledger technology that is the base of all crypto networks.

The inquiry will study the risks and opportunities presented by digital currencies for businesses and individual investors. Also, the government wants to see the possible benefits for itself from integrating cryptocurrencies and blockchain into daily operations.

Nicky Morgan, the Chair of the Treasury Select Committee, told the press that public interest in cryptocurrencies is rising, but the investments are unregulated and unprotected by the laws. High risks involved in this market are worrying. She added, that finding the right balance between regulating digital currencies for protection of individual investors and allowing the freedom of innovation is necessary in this case, so the Committee's goal isn't stomping down on overall usage of digital currencies.

This notion is just a next step in widespread action taken by EU governments to regulate cryptocurrencies. Lawmakers all around the Europe are discussing the possible governmental stance on crypto. For example, France and Germany have announced the joint effort which will present a set of regulation in the field during the next G20 summit.