Malaysia Securities Watchdog Making Plans for Regulation of Cryptocurrency Trading. While there has been a lot of talk about potential cryptocurrency bans in the Asian market, it now appears that Malaysia for one is not planning on implementing a ban any time soon. In fact, it is believed that the statutory regulator for securities in the country have been planning for the introduction of cryptocurrency trading regulations within the nation.
It was last Monday during a speech in Kuala Lumpur at the SCxSC Digital Finance Conference that the chairman of the Securities Commission, Ranjit Ajit Singh talked about how far the industry has come and talking about how developing financial technologies are creating a mass of change in digital markets. This comes after a report from the same team at the beginning of the year which outlined their ‘Digital Markets Strategy.’
He mentioned the cryptocurrency markets in particular by saying that the regulator has been closely watching the markets and trading space, subsequently allowing the team to be looking at different relevant regulations that allow them to facilitate the effective and functional use of different digital assets in the capital market.
He also mentioned how the extent of this regulatory oversight will reach the secondary markets related to the trading of digital assets and cryptocurrency that is already established.
The watchdog clearly is fully aware of the constant rise in interest, as well as demand for cryptocurrency. This is why they are taking active steps to place regulations in the trading of these products and embracing the trend before any potential issues or problems occur in Malaysia.
They are aiming to put in place these regulations within the next few months, but they were deliberately vague about an exact date. This is understandable given the volatile nature of the markets to date in what is an ever-changing landscape. They need to take time to properly formulate their strategy and regulations so they are concrete tight and no massive loopholes exist within them.
During this process they will look at similar regulations that have been imposed in other countries across the world to see what lessons can be gleaned from them. This allows them to identify what sort of regulations are working well and what should be avoided.
Of course, in order to properly carry out their duties as a regulator and watchdog of cryptocurrency trading, they will need the platform from which they can do so for, along with all of the relevant capabilities.
This is where the Bank Negara Malaysia comes in. This is the central bank in the country and they will be working alongside the regulator in order to develop and install the necessary framework in the near future.
This will be done in a careful and controlled manner so that the right framework is implemented on the first attempt. It is vital that market integrity is upheld and investors as well are sufficiently protected.
There is no doubting that these words will come as a relief for those who have been trading cryptocurrency in Malaysia, whether as retail or institutionally. It was not even a single month ago that there was a refusal by the central bank to decisively say whether or not they would be placing a blanket ban on cryptocurrency.
