The head of the Malaysian central bank revealed more details about the future regulatory framework of the company. institution governing the use of cryptocurrencies in the country. ]
Speaking Wednesday in Kuala Lumpur at a summit on counterterrorism funding, Bank Negara Malaysia (BNM) governor, Muhammad bin Ibrahim, developed "clear guidelines" for participants in the cryptocurrency industry. By focusing on the fight against money laundering and the financing of terrorism, Ibrahim revealed that starting next year, those who will convert cryptocurrency into currency trustee will be designated as "reporting institutions" that comply with certain mandatory rules.
According to the upcoming regulatory mandate, these "reporting institutions" will be required to implement measures to prevent their platforms from turning into money laundering and terrorist financing, according to the banker central.
In a quote reported by Reuters, Ibrahim said:
It is to prevent the misuse of the system for criminal and illegal activities and illegal activities and to ensure the stability and integrity of the financial system.
Although the final timetable for future settlements is unclear, Ibrahim confirmed the plan of the authority to introduce a regulatory framework before the start of the year. "We hope that by the end of the year, the BNM will be able to issue cryptocurrency guidelines, especially those related to money laundering and terrorist financing," he said. Mr. Ibrahim said at a financial symposium in September. Although unlikely, the governor of the central bank has not ruled out a outright ban on cryptocurrencies.
Ibrahim's remarks this week come after the similar noteworthy statements from the securities regulator and the Malaysian watchdog pressing ahead with regulations for the local cryptocurrency trade. Earlier this month, Ranjit Ajit Singh, chairman of the Securities Commission (SC) Malaysia, stressed the intention of the authority to "recognize and accept" the growing trend towards increasing interest and demand for cryptocurrencies. The SC, he said, will work with the Malaysian central bank to "carefully implement the right framework".
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