Malaysian government officials recently mentioned that they are still debating whether or not the country should legalize cryptocurrencies. Most of the cryptocurrency community in Malaysia seems to be frustrated over this due to the rapid growth of Malaysia’s economy.
Thailand, Singapore, and Hong Kong continue to regulate their crypto markets with one eye on greater adoption, Malaysia is lagging behind the forerunners on the sub-continent.
Malaysia is currently one of the few South East Asian nations do not have a clear and defined status on the legalization for digital currencies. Nobody is quite sure when or if a decision will be made in the near future. And nobody is sure if crypto is legal or not. This could be a massive opportunity that the government is missing out on.
The Malaysian Federal Territories Minister Khalid Abdul Samad recently confirmed the indecision when attending a charity event in Kuala Lumpur, reported on by the local media outlet, the Malay Mail. Samad said they are still not sure which direction to take in regards to legalizing cryptocurrency. He was quoted as saying:
People have asked me if these (cryptocurrency and digital currency) currencies are legal or illegal. At the moment, the answer is neither legal nor illegal as the situation is still unclear. Yes, I was involved in the launch of Harapan Coin. However, I was not appointed as finance minister. Instead, I became federal territories minister.
The community raged about this and is annoyed by the fact that the government can’t make a solid decision.
Because of this, a lot of Malaysian companies are still afraid of adapting to the new blockchain technologies. Banks aren’t willing to take risks and consumers are worried that all their investments will be gone if it claimed to be illegal.
Malaysia’s surrounding countries have already taken steps into regulating cryptocurrencies.