Malaysia may introduce crypto and blockchain legislation to regulate the sector and keep pace with other jurisdictions, Prime Minister Datuk Seri Anwar Ibrahim said during a visit to Abu Dhabi.

Malaysia has explored digital technologies before. In 2023 it conducted a study with the Bank for International Settlements and other central banks that found that cross border central bank digital currency payments are viable.

Malaysia is considering introducing legislation to regulate cryptocurrencies and blockchain technology in the country, Prime Minister Anwar Ibrahim said on Monday during a visit to Abu Dhabi.

The move would aim to keep pace with other jurisdictions in the Middle East and globally that have already established frameworks for the digital asset sector. Anwar said he had highlighted the importance of Malaysia exploring the space during a meeting with Abu Dhabi government officials and representatives from Binance, the world’s largest crypto exchange by trading volume.

“I proposed several months ago how our agencies, including security, treasury and Bank Negara study how Malaysia can explore this so we aren’t left behind,” he said, according to a report by the New Straits Times on Tuesday. “Ensuring that it is regulated could safeguard the people’s interests and prevent leakages.”

Anwar said the discussions centered on policy proposals from the UAE side, which he added were “interesting.” The leaders from the Gulf state “feel that they can forge a close cooperation with Malaysia on this issue,” he said. “I am leaning towards not just approving but also expediting this.”

Malaysia has previously taken steps to integrate digital technologies into its financial system. In 2023, it participated in a study led by the Bank for International Settlements (BIS) together with central banks from Singapore, South Africa and Switzerland that found cross-border central bank digital currency (CBDC) payments to be feasible.

The country also announced plans in 2022 to establish a national blockchain infrastructure, which would serve as a platform for government agencies and businesses to develop and deploy blockchain applications.

However, Malaysian authorities have also taken a strict approach towards crypto companies operating within its borders without a license. Binance was ordered to halt its operations in the country by the Securities Commission in 2021, and Huobi Global was issued a similar directive in 2023.

Two phone calls to the Prime Minister's office were not answered.