Guidelines for Cryptocurrency Businesses in Malaysia

Updated on Wednesday 20th December 2017

The cryptocurrency is a newer type of business activity carried out in Malaysia and other jurisdictions. Thus, in numerous countries the sector is not regulated by a specific rule of law, but there is a tendency of creating a suitable legal framework. This is also applicable to Malaysia, where the local authorities have drafted regulations applicable to cryptocurrency businesses. Investors who want to open a company in Malaysia should know that under the stipulations of the legislation, such entities will be considered reporting institutions. Our team of specialists in company formation in Malaysia can provide in-depth assistance on the main rules of law referring to the activity of cryptocurrency businesses
 

Cryptocurrency legislation, applicable in 2018  


Cryptocurrency companies operating in Malaysia will become reporting institutions starting with 2018, under the regulations of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act. Our team of agents in company formation in Malaysia can provide in-depth information on the stipulations of this law

Foreign businesmen interested in starting the procedure of company registration in Malaysia in this field of activity will need to respect the regulations of the above mentioned Act, which will establish the legal obligations such entities will have here. The legislation for cryptocurrency companies is established by the Bank Negara Malaysia.  

At the moment, cryptocurrency activities are not considered a legal tender in Malaysia, but certain cryptocurrencies, such as Bitcoin, will become legal in this country, encouraging the participation of citizens for conducting financial transactions through the usage of virtual currencies

 

Cryptocurrency in Malaysia  


Local investors are interested in investing in cryptocurrency businesses. At the level of June 2017, more than 47% of the Malaysian investors purchased bitcoins and altercoins, with a growing interest (more than 52% of the investors) in transactions completed only in bitcoin, the most popular virtual currency

Businessmen who are considering investing in cryptocurrencies are invited to contact our team of consultants for in-depth advice on the new regulations concerning this economic field. 

Ellen

December 20, 2017

I consider that this field will have a massive impact over the financial markets across the world and, furthermore, that it is necessary to establish a rule of law in this sector.



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