CRYPTOCURRENCY: AN INSIGHT INTO THE MALAYSIAN REGULATORY APPROACH
NAZLI ISMAIL NAWANG, IDA MADIEHA ABD GHANI AZMI
Abstract
Cryptocurrency like Bitcoin, Ethereum and many others are closely affiliated with the financial technology (fintech) industry. These digital or virtual currencies are encrypted using cryptography and distributed on public ledger (blockchain) across decentralised peer-to-peer (P2P) networks. Since cryptocurrencies are issued by private entities and technically beyond the controls of any states, they may be exploited by criminals for illicit purposes such as money laundering, terrorism financing and many others. Thus, this article will examine whether cryptocurrency amounts to a new form of money under the existing rules on financial services and analyse how it should be regulated. This study is a qualitative research that adopts pure legal research methodology by analysing existing laws on national currency and digital currency. Further, the study analysed other secondary sources including academic books, journal articles, conference papers, and other materials in newspapers or reputable websites. The output of the research is expected to provide an overview on the regulatory framework for cryptocurrency in Malaysia. In conclusion, the government has favoured a minimalist approach so as not to stiffen the innovation and future development of cryptocurrency in the country.