Malaysia Weighs Introduction of Crypto, Blockchain Legislation

Malaysia may introduce crypto and blockchain legislation to regulate the sector and keep pace with other jurisdictions, Prime Minister Datuk Seri Anwar Ibrahim said during a visit to Abu Dhabi.

"I proposed several months ago how our agencies, including security, treasury and Bank Negara study how Malaysia can explore this so we aren't left behind," he said, the New Straits Times reported on Tuesday. "Ensuring that it is regulated could safeguard the people's interests and prevent leakages."

Anwar said he had spoken to Abu Dhabi's government and crypto exchange Binance on policy proposals. The UAE leaders "feel that they can forge a close cooperation with Malaysia on this issue," he said. "I am leaning towards not just approving but also expediting this."

Malaysia has explored digital technologies before. In 2023 it conducted a study with the Bank for International Settlements and other central banks that found that cross border central bank digital currency payments are viable. In 2022, it said it was creating a national blockchain infrastructure.

It has also reprimanded crypto companies for operating illegally within its borders, ordering Binance to halt its operations in the country in 2021 and Huobi Global in 2023.

Two phone calls to the Prime Minister's office were not answered.