Bank Negara Malaysia is working on a regulatory framework for digital currencies such as bitcoin, with the aim of further securing the country against money laundering and terror financing.
Tan Sri Muhammad Ibrahim, the bank’s governor, said from next year, those converting cryptocurrencies into fiat money would be designated as “reporting institutions” under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Reporting institutions are required by law to undertake preventive measures to prevent their firms from being used as a conduit for money laundering and terrorism financing activities, according to the central bank.
“This is to prevent the abuse of the system for criminal and unlawful activities and ensuring the stability and integrity of the financial system,” Muhammad said.
But he did not say when the regulations would be finalised.