Yesterday Bank Negara Malaysia released a report, presenting new draft regulations for cryptocurrency exchanges that operate in the country. In the report bank asks the public to weigh in on measures aimed at easing money laundering and terrorist financing concerns related to cryptocurrencies.
The proposed regulations require businesses to verify their customers identities, monitor transactions and report any suspicious activities to Malaysian authorities. Additionally, companies must report usage statistics to the central bank.
If approved, the regulations would apply to any person or company which exchanges cryptocurrency on behalf of someone else. And while the regulations acknowledge that companies might use cryptocurrencies, the nation officially still does not recognize them as legal tender.
According to the release, Bank Negara Malaysia is taking recalls on the draft rules until January 14.
In November, 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.