Malaysia Plans to Develop Comprehensive Policies for Cryptocurrency and Blockchain Technology

Malaysia’s Prime Minister Anwar Ibrahim announced plans to develop comprehensive policies for cryptocurrency and blockchain technology on 14 January 2025.

Malaysia’s Prime Minister Anwar Ibrahim announced plans to develop comprehensive policies for cryptocurrency and blockchain technology on Tuesday.

Following his recent discussions with Binance co-founder Changpeng Zhao and leaders from the United Arab Emirates (UAE), Ibrahim is signaling the country’s intent to position itself as a key player in the global digital economy.

“I had lengthy discussions with the Abu Dhabi leadership and Zhao, co-founder of the world’s largest cryptocurrency platform Binance,” Ibrahim revealed to reporters upon his return to Malaysia from a three-day visit to Abu Dhabi, where he engaged in extensive talks about the future of digital finance and technology.

“We now face demands which require us to think about making significant changes,” he said.

Ibrahim returned to Malaysia after a three-day visit to Abu Dhabi, where he engaged in extensive talks about the future of digital finance and technology

Highlighting the urgency of embracing innovation, Ibrahim pointed to the rapid adoption of emerging technologies like cryptocurrency, blockchain, artificial intelligence (AI), and data centers.

“We feel that Malaysia should not be left behind while mired in an old financial system,” the PM said, revealing that he has directed key government agencies, including the Treasury, Securities Commission, and Bank Negara (Malaysia’s central bank), to explore how the country can stay competitive in the crypto industry.

“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,” Ibrahim said. “Ensuring that it is regulated could safeguard the people’s interests and prevent leakages.”

This directive aims to ensure that Malaysia does not fall behind other nations that are actively fostering crypto-friendly ecosystems.

“This will be a radical departure from the old ways,” he added. “I hope we can be more open to this. I am leaning towards not just approving but also expediting this.”

“We feel that Malaysia should not be left behind while mired in an old financial system,” the PM said

Ibrahim announced plans to draft a comprehensive policy paper on cryptocurrency and blockchain technology, which will be presented to the Malaysian cabinet for review and approval.

He stressed that regulations are crucial not only for fostering innovation but also for safeguarding public interests and preventing potential financial risks such as fraud or misuse.

“This innovation is just like AI, which would revamp the financial world. We should not sit idly by and wait and later be forced to do so after others have done it already,” Ibrahim said.

The Prime Minister expressed his intent to collaborate with international partners, particularly the UAE, which has emerged as a global leader in crypto regulation.

“I had the opportunity to meet with the Abu Dhabi leadership, and we discussed at length the future of digital finance and technology, covering topics such as cryptocurrency, blockchain, artificial intelligence and data centers,” he said.

“The world is changing rapidly around us, and these emerging technologies present both opportunities and challenges that we must be prepared to face.”

Recently, popular crypto exchange Bybit was forced to shut down its operations in Malaysia after failing to obtain the necessary regulatory approval. The Securities Commission Malaysia (SC) took action against Bybit and its CEO, Ben Zhou.

The SC ordered Bybit to disable its website and mobile applications by 25 December 2024 and cease all promotional activities targeting Malaysian investors. The exchange was also asked to shut down its local Telegram support group immediately.

This incident underscores the need for a well-defined regulatory framework that balances innovation with consumer protection. Ibrahim acknowledged these concerns but urged stakeholders to adopt an open-minded approach.

“As with all new ideas raised, there will be some concerns. We have to train our personnel, develop competency, and get the players to participate,” he said.