Malaysia Considers Creating Cryptocurrency Policy to Modernize Its Financial System

This comes after discussions between Prime Minister Datuk Seri Anwar Ibrahim, Abu Dhabi leaders, and Changpeng Zhao (CZ), the founder of Binance.

Prime Minister Anwar Ibrahim of Malaysia discussed cryptocurrency policy regulation during a three-day official visit to Abu Dhabi. He met with UAE leaders and Changpeng Zhao, the former CEO of Binance, one of the world’s largest cryptocurrency exchanges. Anwar highlighted the need for Malaysia to adapt to evolving global financial trends and adopt cryptocurrency-friendly regulations.

“This is an evolution that happens quickly and requires us to be equally fast. Malaysia should not be left behind in an outdated financial system,” Anwar said, describing the shift toward cryptocurrency as a “radical departure from the old ways.”

Anwar mentioned that UAE policymakers expressed interest in collaborating with Malaysia to develop a framework for cryptocurrency regulation, which would involve extensive discussions and moving away from antiquated financial models.

The prime minister stated that relevant Malaysian authorities, including the Treasury, the Securities Commission and Bank Negara Malaysia, would conduct detailed studies on cryptocurrency. These studies would cover aspects such as training personnel, building expertise and engaging industry players. Anwar acknowledged that there would be concerns about the new policy, but highlighted the need to prepare Malaysia for the era of digital finance.

Malaysia's move toward cryptocurrency regulation comes amid increased scrutiny of the industry by the authorities. On Dec. 27, the Securities Commission ordered Bybit, a major crypto exchange, to stop operating in Malaysia. The regulator accused Bybit of operating an unregistered digital asset exchange in the country.

Earlier, on Dec. 23, the Securities Commission added Atomic Wallet to its investor alert list. Other platforms like Paxful, KuCoin and MEXC were also flagged for operating without proper registration in Malaysia.