Soon crypto-currency company of Malaysia will be obliged to operate in accordance with regulatory requirements and to carry out its operations more transparent – this follows from the statements of the Central Bank of the country. The Central Bank explained that it does not regulate digital currencies and does not endorse them, and continues to encourage the public to carefully examine each possible investment, because people themselves are responsible for their actions when it comes to selling or buying of digital currencies.
Bank Negara Malaysia, the country’s Central Bank, recently issued draft regulations outlining the obligations of reporting that should be observed in enterprises of the cryptocurrency industry, in accordance with the 2001 Law on combating money laundering, terrorist financing and proceeds of unlawful activities (AMLA).
In the published project
sets out «minimum requirements and standards that digital cryptocurrency exchanges must comply in order to increase transparency of activities related to digital currency and provide effective and reliable procedures for AML/CFT to reduce the risks associated with conducting illegal transactions through stock exchange».
It is also expected that cryptocurrency companies will have to publish in open access some information to help people to better assess the risks associated with cryptocurrencies. The CB hopes that increasing the transparency of transactions using bitcoin, litecoin and other cryptocurrencies will help to reduce their participation in fraudulent transactions. Any company which refuses to comply with the new requirements, can become a subject of interest to law enforcement and will be charged with violation of articles of the law of AMLA.
A sharp increase in the prices of bitcoin and other cryptocurrencies out of the industry by more and more regulators of different countries seek to control the cryptocurrency environment, starting with the prosecution
users for tax evasion and ending the full ban
work cryptocurrency exchanges.
Malaysia is not left out – its controller does not lose hope to take control of cryptocurrency companies at the same time deciding how to classify and regulate the digital currency. The draft regulations referred to a possible revision of the content of the project in five years, if the Central Bank deems it necessary. Feedback and comments to the draft Negara Malaysia will be accepted until 14 January 2018.