Malaysia Presented Rules for Cryptocurrency Exchanges

Malaysia's central bank asks the public to weigh in on measures aimed at solving problems related to cryptocurrencies
15 December 2017   1839

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.

BIS to Issue Research on Bitcoin Problems

Researcher from the Bank of International Settlements believes BTC should abadon PoW
22 January 2019   82

Researchers from the Bank for International Settlements published a report in which they stated that only by abandoning the Proof-of-Work mechanism of consensus, Bitcoin could get rid of its current and future problems.

According to them, in the future, when the size of the rewards for mining drops to zero, transaction processing fees alone will not be enough to justify the miners' activities. Consequently, the Bitcoin network will become so slow that it will be impossible to use it, the authors argue.

Simple calculations suggest that once block rewards are zero, it could take months before a Bitcoin payment is final, unless new technologies are deployed to speed up payment finality. 
 

Raphael Auer

Principal Economist, BIS

The BIS admits that second-level solutions such as the Lightning Network can ease the task, but “only fundamental remedy would be to depart from proof-of-work.” According to the report, the transition to alternative consensus mechanisms “require some form of social coordination or institutionalisation”.

The Bank for International Settlements contributes to the cooperation of 60 central banks from various countries of the world, which account for 95% of global GDP.

Earlier this month, the agency disclosed statistics on central bank initiatives in the field of state digital currencies. According to him, about 70% of central banks conduct research related to the issuance of national digital currencies, but plans for their implementation and the perception of the issue vary considerably in different countries