The Malaysian Ministry of Communications and Multimedia (KKMM) discussed the possibility of the legalization of cryptocurrencies and adoption of cryptocurrency as a legal tender.
The Deputy Communications and Multimedia Minister, Datuk Zahidi Zainul Abidin said the ministry has proposed to the government the adoption of cryptocurrencies such as Bitcoin as a legal tender, in an effort to increase youth participation.
They believe the legalization will help the active young crypto users, especially in NFT trading platforms.
Cryptocurrency in Malaysia falls under the purview of the country’s central bank, Bank Negara Malaysia and Securities Commission.
“We are trying to see how we can legalize this so that we can develop youth participation in crypto and assist them,” he said. “We hope the government can allow this”.
This statement from the comms ministry is in direct opposition to the finance ministry’s stance.
Only a few weeks ago, the deputy finance minister stated “Digital assets such as bitcoin and Ethereum are not suitable to be used as a payment instrument … In general, digital assets are not a store of value and a good medium of exchange.” in the Parliament.
He also explained that cryptocurrencies are not a suitable means of payment because they do not “exhibit characteristics of money.”
With the ongoing Russian vs. Ukrainian war bringing to light the scope and reach of crypto, governments of several different countries are looking to regulate and/or legalize the crypto industry.
While the Indian government tries to figure out the category of crypto earnings under the GST law, on the other hand the Australian Senator proposed a Digital Services Act regarding the regulation of the crypto industry.
