{"id":41743,"date":"2020-01-08T15:26:11","date_gmt":"2020-01-08T07:26:11","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=41743"},"modified":"2020-03-13T15:19:48","modified_gmt":"2020-03-13T07:19:48","slug":"buy-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/buy-cryptocurrencies","title":{"rendered":"Is It Safe (Or Legal) To Buy Bitcoin In Malaysia?"},"content":{"rendered":"

In partnership with\u00a0 \u00a0<\/strong>\"\"<\/p>\n

Do you happen to be an investor, a trader or a tech enthusiast?<\/p>\n

If so, Bitcoin has probably crossed your radar. Whichever camp you fall into, there\u2019s plenty of appeal: you could diversify your portfolio by investing a small amount into Bitcoin, buy and sell Bitcoin for profit, or simply be a part of a technology that could disrupt and revolutionise industries<\/a>.<\/p>\n

In Malaysia, however, Bitcoin \u2013 and cryptocurrencies in general \u2013 have occupied a fuzzy legal area. If you\u2019ve ever been interested in getting your hands on cryptocurrency, you may not be aware of whether it\u2019s actually legal in Malaysia. Or how to go about buying it.<\/p>\n

Here\u2019s what you need to know about investing in cryptocurrencies legally and securely with Luno<\/a>.<\/p>\n

<\/span>What is a cryptocurrency?<\/b><\/span><\/h2>\n

Still not quite sure what cryptocurrencies are?<\/p>\n

A cryptocurrency<\/b> is a sort of digital currency that uses cryptographic techniques to control its creation. You\u2019ve probably heard of Bitcoin, which is currently the world\u2019s best-known cryptocurrency. <\/span><\/span><\/p>\n

Bitcoins and other types of cryptocurrency exist thanks to a technology called blockchain<\/b>. Think of a blockchain as a public database that is distributed across many computers. Each cryptocurrency transaction is recorded in a \u2018block\u2019 of data, which is connected to other blocks of information in a \u2018chain\u2019. <\/span><\/p>\n

Unlike regular money (like the Malaysian Ringgit), Bitcoin and the like are decentralised. This means they aren\u2019t controlled by a central authority (such as the government). Instead, control is distributed among a large network of computers.<\/p>\n

<\/span>Are cryptocurrencies legal in Malaysia?<\/b><\/span><\/span><\/h2>\n

Digital currencies are not recognised as legal tender<\/a> in Malaysia. This doesn\u2019t mean that they are illegal<\/i>, however. \u2018Legal tender\u2019 just refers to currency that is used as an official medium of payment. For example, US dollars are not accepted as legal tender in Malaysia \u2013 but that doesn\u2019t mean that it\u2019s illegal for you to use your Benjamins if your retailer accepts them. <\/span><\/p>\n

The Malaysian government has even announced that cryptocurrencies will not be banned<\/a>. \u201cIt is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public,\u201d said the Ministry of Finance last year.<\/p>\n

With that said, the Malaysian government does regulate digital asset exchanges \u2013 i.e. the platforms that you can use to trade Bitcoin and other digital currencies, hence any digital asset exchange that wants to operate in Malaysia has to comply with a set of regulations<\/a> issued by the Securities Commissions (SC) of Malaysia. These regulations require exchanges to have robust measures in place to protect users and their assets.<\/p>\n

\"\"<\/a><\/p>\n

<\/span>How can Malaysians buy cryptocurrencies safely?<\/b><\/span><\/h2>\n

Generally, there are three ways to get cryptocurrency. You can buy it, you can mine it or you can earn it through selling products or services. Buying from a cryptocurrency exchange is the easiest way.<\/p>\n

Technically, you don\u2019t need an exchange to buy cryptocurrency \u2013 as long as you\u2019re willing to find someone with Bitcoin (or your cryptocurrency of choice), agree on a price and then have them send it to your wallet (which is a software you use to \u2018store\u2019 Bitcoin). Buying from an exchange simplifies this process. It brings buyers and sellers together and gives you a wallet so you don\u2019t have to maintain your own. <\/span><\/p>\n

But you don\u2019t want to buy from just any<\/i> exchange.\"\"<\/a><\/p>\n

Cryptocurrency exchanges, many of which are unregulated, have been targets of theft and fraud. More than 980,000 bitcoins<\/a> have been stolen from exchanges since 2011, few of which have been recovered. Some unscrupulous exchanges have even vanished<\/a> with their users\u2019 funds, leaving investors and traders without a single cent. When you trade on an unregulated or unsecured exchange, you risk losing all your assets.<\/p>\n

To trade Bitcoin and other cryptocurrencies safely, you\u2019ll need to use a regulated and secure exchange like Luno<\/a>.<\/p>\n

Luno is the first digital asset exchange to be fully approved by the SC, which means that it has to comply with regulations that help ensure the safety of its users and their assets. Some of the ways<\/a> Luno keeps its users\u2019 assets safe include:<\/p>\n