Malaysia’s Ministry Of Finance Doesn’t Allow Digital Assets As Payment Instruments

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Malaysia's Ministry Of Finance Doesn't Allow Digital Assets As Payment Instruments

KUALA LUMPUR – The Malaysian Ministry of Communication and Multimedia (KKMM) is known to be proposing new rules to the central government to legalize the existence of digital assets such as cryptocurrencies and nonfungible tokens (NFT).

Deputy Minister of Communications and Multimedia Datuk Zahidi Zainul Abidin said the existence of digital assets is now an important aspect to advance the country’s economy, given the large number of cryptocurrency adoptions among the public, especially the younger generation.

He added that the existence of special rules governing the legalization of cryptocurrencies, can help the younger generation in the success of the digital asset industry in the Malaysian region.

Although some central governments have approved the idea. However, it seems that licensing for digital assets in Malaysia cannot be done in the near future, this is because all these decisions are under the purview of the Malaysian Ministry of Finance.

Meanwhile, the Malaysian finance ministry is still not willing to give permission for the legalization of digital assets as legal tender.

His party said that crypto could not be a legal tender because it did not have universal characteristics in money.

Moreover, digital assets are very vulnerable to fluctuations. It is feared that price instability can trigger vocals in the crypto market.

Even so, several Bank Negara Malaysia are reportedly starting to introduce a blockchain network along with a central bank digital currency or CBDC to the public. This certainly brings fresh air to KKKM.

KKMM added that it will continue to try to urge Malaysian regulators to legalize the use of cryptocurrencies and nonfungible tokens for public transactions in its territory.

The effort was deliberately made by KKMM to make Malaysia a cryptocurrency trading center in the Southeast Asian Region.

“We hope that the government will allow and legalize this so that we can increase the absorption of cryptocurrency by young people,” concluded the KKM representative, quoted from cointelegraph.

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