Indecision Mars Crypto Efforts In Malaysia, As Government Remain Undecided Over Legalization

… and central bank issued a joint statement, confirming they were setting up regulation on cryptocurrency and initial coin offering (ICO) assets.

The Malaysian government is still undecided whether to legalize cryptocurrencies in the country.

According to a report by English-language local media New Straits Times on Jan. 12, the Malaysian Federal Territories Minister, Khalid Abdul Samad, while fielding questions on whether digital currencies are currently legal or illegal, replied saying: “At the moment, the answer is neither legal nor illegal as the situation is still unclear.”

Mr. Samad noted that while he was involved in the launch of Harapan Coin (HRP) — a proposed political cryptocurrency — he isn’t the finance minister and therefore the matter does not fall under his jurisdiction.

It would be recalled that in December 2018, Malaysia’s finance regulator and central bank issued a joint statement, confirming they were setting up regulation on cryptocurrency and initial coin offering (ICO) assets.

Samad was also reported to have previously proposed to Bank Negara Malaysia and Prime Minister Tun Dr Mahathir Mohamad to use the digital currency, Harapan Coin, for government transactions.

However, according to a report by Cointelegraph in November, 2018, a Malaysian Member of Parliament had urged the government to implement proper cryptocurrency regulations before undertaking the Harapan Coin cryptocurrency project. Cointelegraph further explained in December, 2018 through a dedicated analysis that as much as 30 percent of the funds raised for the project were destined for the system’s administrators — who remain effectively anonymous.

Related Posts:

Malaysian Government Reportedly Still Undecided on Whether to Legalize Crypto

… central bank issued a joint statement in which they confirmed they were setting up regulation on cryptocurrency and initial coin offering (ICO) assets.

The Malaysiangovernment is reportedly still undecided whether to legalize cryptocurrencies, English-language local media New Straits Times reports on Jan. 12.

When answering a query about whether digital currencies are currently legal or illegal, Khalid Abdul Samad, the Malaysian federal territories minister, reportedly said:

“At the moment, the answer is neither legal nor illegal as the situation is still unclear.”

Samad also pointed out that while he was involved in the launch of Harapan Coin (HRP) — a proposed political cryptocurrency — he wasn’t appointed as finance minister, noting that the the matter therefore does not fall under his jurisdiction.

In December 2018, as Cointelegraph reported, Malaysia’s finance regulator and central bank issued a joint statement in which they confirmed they were setting up regulation on cryptocurrency and initial coin offering (ICO) assets.

Samad has also reportedly previously proposed to Bank Negara Malaysia and Prime Minister Tun Dr Mahathir Mohamad to use the digital currency, Harapan Coin, for government transactions.

However, as Cointelegraph reported in November last year, a Malaysian Member of Parliament had urged the government to implement proper cryptocurrency regulations before undertaking the Harapan Coin cryptocurrency project.

Cointelegraph explained in a dedicated analysis in December 2018 that as much as 30 percent of the funds raised for the project were destined for the system’s administrators — who remain effectively anonymous.

Related Posts:

From Goldman’s 1MDB Scandal to Bitcoin, Here’s a Look Ahead at 2019

One year ago, Bitcoin was minting millionaires as its value surged to nearly $20,000. Now it is worth about $4,000, and many wonder whether it can …

Goldman raised more than $6 billion for that fund, called 1Malaysia Development Berhad, or 1MDB. The money was supposed to benefit the Malaysian public but ended up enriching Goldman and those close to Najib Razak, who was prime minister. In December, the Malaysian government filed criminal charges against Goldman, accusing the firm of violating securities laws there.

Those charges come on top of a Justice Department investigation of violations of the Foreign Corrupt Practices Act, which bars corporations from bribing foreign officials to gain a business advantage. Goldman’s former top banker in Asia, Timothy Leissner, pleaded guilty in August, describing his role in concealing bribes and kickbacks. Charges were also filed against Roger Ng, Mr. Leissner’s former deputy, who is being held in Malaysia pending extradition.

The firm initially tried to shake off the charges by claiming that any misconduct was the work of a few rogue employees, but reports that Goldman’s former chief executive Lloyd C. Blankfein met with a key figure in the fraud have undercut that defense.

Goldman’s chief executive, David M. Solomon, has offered a full-throated defense of the firm. In a message to employees, he wrote: “We believe our culture and our processes around our due diligence and compliance was strong at the time, and is even stronger today.”

An American corporation can be prosecuted for the acts of its employees, so Goldman does not have many defenses if prosecutors decide to file charges.

Related Posts:

  • No Related Posts

Guan Eng puts the brakes on cryptocurrencies pending Bank Negara decision

KUALA LUMPUR: Finance Minister Lim Guan Eng has put the brakes on those seeking to create cryptocurrencies, pending the final word from Bank …

KUALA LUMPUR: Finance Minister Lim Guan Eng has put the brakes on those seeking to create cryptocurrencies, pending the final word from Bank Negara Malaysia.

“We need to be cautious as Bank Negara is the authority that handles and manages all forms of new currency technology.

“I am certain that there are those trying to introduce their own mechanism.

“This is where I wish to advise all parties, no matter who they are, intending to issue bitcoins or cryptocurrency, that they must refer to Bank Negara which is the authority that will have the final say on this new form of currency,” Lim said when answering a question by Datin Paduka Dr Tan Yee Kew (PH-Wangsa Maju) in Parliament on Monday (Nov 26).

Lim said it was necessary for the central bank to carry out an indepth study on the matter.

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

He added that the government was still open to new forms of currency but this must be done in accordance with existing laws.

Dr Tan wanted to know what measure were being taken to address the issue of cryptocurrency as it could result in problems for the local currency.

Later, during debates at the committee stage on Budget 2019, Khairy Jamaluddin (BN-Rembau) asked about the status of the “Harapan Coin” cryptocurrency, saying there were reports that it has been sold through Harapancoin.com.

“Although it is a new initiative and has yet to get approval, it was reported that the coin is being traded at US$45 for 100 units and has since collected US$772,” he said.

The proposed Harapan Coin was raised by Federal Territories Minister Khalid Samad earlier this month, who said it would be the world’s first political fundraising platform using blockchain and cryptocurrency technologies.

Khalid had said that the paperwork and presentation on the Harapan Coin has been prepared and will soon be presented to Bank Negara and Prime Minister Tun Dr Mahathir Mohamad.

Related Posts:

Ripple Adds 5th-Largest Southeast Asian Bank to Enterprise Blockchain Network

Despite being on the cutting-edge of technological development, CIMB is one of Southeast Asia’s first banks to turn to the blockchain for faster, easier …
ripple blockchainripple blockchain
Advertisement

RippleNet is expanding its network of banks by adding Malaysia’s CIMB Group to its fold. CIMB is the ASEAN’s fifth-largest bank and will team up with Ripple to work on enabling instant cross-border payments for CIMB’s markets.

RippleNet’s customer base now constitutes over a hundred global financial institutions, which CIMB will be able to partner with, facilitating global payments.

Despite being on the cutting-edge of technological development, CIMB is one of Southeast Asia’s first banks to turn to the blockchain for faster, easier payments. Partnering with RippleNet will allow the bank to pass on this benefit to its customers, many of whom currently live with slow and inefficient procedures.

World Bank figures place the value of remittances to Southeast Asia at a massive $120 billion in 2018. But the size of the global market for cross-border payments is even bigger, with Boston Consulting Group (BCG) estimating an annual volume of $27 trillion. This is a massive market for CIMB to gain a foothold in, considering that almost 40 percent of this is in the ASEAN region.

RippleNet’s Blockchain-Based Solution

CIMB will be using Ripple’s blockchain-based solution to improve its existing remittance service, SpeedSend. This service currently enables users to send and receive funds and includes features like direct account credit and instant cash collection.

However, incorporating Ripple technology will mean that SpeedSend will not be limited to Malaysia but will facilitate payments throughout the ASEAN region. They will be able to send cross-border payments hassle-free.

CEO of CIMB Group Tengku Dato’ Sri Zafrul Aziz, said:

“This innovative blockchain solution will revolutionize international cross-border remittances, and is a testament to CIMB’s ongoing efforts to enhance its digital banking proposition by providing speedy and cost-efficient solutions to our customers across ASEAN.”

Ripple’s CEO, Brad Garlinghouse, also commented on the partnership, saying:

“CIMB’s network already spans 15 countries, nearly 800 branches and offers SpeedSend–one of the best solutions in the ASEAN region. Now, by integrating Ripple’s blockchain technology, they will enable their customers to send vital funds to family, friends and loved ones more efficiently.”

CIMB doesn’t only plan on using RippleNet for its SpeedSend product but aims to roll it out to other use cases as well.

Featured Image from Shutterstock

Get Exclusive Crypto Analysis by Professional Traders and Investors on Hacked.com. Sign up now and get the first month for free. Click here!

Advertisement

Related Posts:

  • No Related Posts