Status of Cryptos is Unclear in Malaysia: Khalid Samad

Jan 13, 2019 at 10:18 Update Date :Jan 13, 2019 at 10:18 UTC

The Malaysian Federal Territories Minister, Khalid Abdul Samad said that the legality of digital assets is still under consideration. Currently, cryptocurrencies are neither legal nor illegal in the country. The Malaysian government is yet to take a final decision whether to legalize the use of virtual currencies in the country or not.

Also Read: Cryptos are Becoming a Popular Way of Cross-Border Payments

Last year the finance minister of Malaysia warned the companies not to issue new tokens and wait till the central bank of the country gives clear advice. The finance minister said that,

“Don’t do it without Bank Negara’s guidelines or directive on the matter to avoid doing something wrong and against the law.”

According to the finance minister, the government is open to a new form of currency but only as long as they adhere to the law. The politicians in the Asian country are concerned that the cryptocurrencies could pose a threat to the functioning of national currencies.

According to Khalid Abdul, the government has yet not decided whether to legalize cryptocurrencies or not. The government is still unclear on the issue of cryptocurrencies. Khalid said that people asked him about the legality of digital currencies and cryptocurrencies but currently the situation is unclear. He further added

“Yes, I was involved in the launch of Harapan Coin. However, I was not appointed as finance minister. Instead, I became federal territories minister. As the matter is not under my jurisdiction, I cannot push too much.”

Khalid was involved in the Harapan coin project. The coin was invented to raise the political funding for the coming election. The funds will be used for the purpose of electing opposing sentiments against the current governing coalition. The general election in Malaysia will be in 2019. It is the first cryptocurrency in the world which is created to win an election and provide value to the contribution made by like-minded people.  Harapan coin project is still not approved by the central bank of the country.

Currently, the status of cryptocurrencies in Malaysia is not clear. Bitcoin and other cryptocurrencies are not a legal tender in the country but they are not even banned. People can trade cryptocurrencies on their risk. Individuals and companies which trade in cryptocurrencies are not protected by the law.

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