Consent to cryptocurrency issuance
Cryptocurrency issuance – Countries around the world are regulating cryptocurrencies differently, some choosing to regulate the space and others banning them completely. Others like Malaysia have given its country’s central bank to give consent to cryptocurrency issuance.
Lim Guan Eng, the Malaysian finance minister, said:
“I advise all parties wishing to introduce Bitcoin (style) cryptocurrency to refer first to Bank Negara Malaysia as it is the authority that will issue the decision on financial mechanism. Do not try to do something without guidelines from Bank Negara and commit something against the law.”
However, Guan noted that Malaysia has no intentions of interfering with the use of virtual currencies within borders. But, those dealing with cryptos in the country need to follow laid out regulations.
The finance minister’s sentiments come at a time when the sale of Harapan Coins is going on. Harapan aims at “eliciting opposing sentiments against the current governing coalition, in preparation for the coming election.”
The sale of the coin, which has been viewed as the first political platform using the distributed ledger technology for fundraising purposes, has largely been viewed as ‘not-fit’ since it does not adhere to the regulations set by the country’s top bank.
Over the years, regulators all over the world have been seeking to gain a central hold of virtual currencies. However, the decentralized nature of digital currencies is proving hard to gain centralization.
According to Steve Giguere, lead engineer, Synopsys’ Software Integrity Group, providing a comprehensive regulatory framework will largely depend on the view regulators have of ‘crypto as a useful financial innovation rather than a threat.’
In Malaysia, cryptocurrency exchanges and others seeking to issue cryptocurrencies will have to go through the country’s central bank before it gets issued to the public.
Do you think giving consent to cryptocurrency issuance will help Malaysia uproot scams and give regulators a way to regulate cryptos?
Let us know your thoughts in the comments section below.