The Bank Negara Malaysia (BNM), the country’s central bank, has issued the Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies to ensure that effective measures are in place to combat such activities.
“The policy aims to ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currency activities in Malaysia,” the central bank said.
The policy has taken into account the feedback received from the representatives of existing cryptocurrency exchangers, industry associations, law firms, financial institutions, academia as well as interested individuals during the public consultation period on the exposure draft released in December 2017.
“Feedback received from respondents mainly focused on the obligations imposed on digital currency exchangers, including businesses providing intermediary services involving digital currencies,” the BNM said.
The policy requires crypto exchanges to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with customer and when the reporting institutions have any suspicion of money laundering or terrorism financing.
The central bank reiterated that the invocation of reporting obligations on crypto exchange business doesn’t represent any kind of endorsement from them – nor does it mean that officials are moving to consider cryptocurrencies a form of legal tender in Malaysia.
“Members of the public are advised to carefully evaluate the risks associated with dealings in digital currencies,” the bank said. “Any persons carrying on activities involving digital currencies should refer to the details within the policy to determine its applicability and comply accordingly.”
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