- Malaysia plans a radical shift to adopt cryptocurrency and blockchain technology.
- Binance and UAE partnerships are key to Malaysia’s digital finance policy.
- Anwar Ibrahim promises swift action for crypto policy development.
Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, is actively working to integrate cryptocurrency and blockchain technology into the nation’s financial systems. Collaborating with Binance and drawing insights from the United Arab Emirates (UAE), Anwar aims to position Malaysia as a leader in financial technology within the region.
Malaysia's new stance on blockchain. 👏
— CZ 🔶 BNB (@cz_binance) January 15, 2025
The discussions were not about Binance but about the crypto industry and Malaysia, including regulations, policies, risks, and collaborations between industries and across national borders. Forward!https://t.co/ppgrYA0ITH
During a three-day visit to Abu Dhabi, Anwar met with UAE officials and Binance co-founder Changpeng Zhao (CZ) to discuss strategies for adopting cryptocurrency and blockchain. Highlighting the UAE’s success as a global fintech hub, he stressed the urgency for Malaysia to innovate to stay competitive.
Malaysia’s Crypto Strategy Underway
The Prime Minister announced that Malaysia’s Treasury, Securities Commission, and Bank Negara Malaysia will assess the policy framework. The focus will include regulation and public safety, ensuring balanced and effective implementation. Anwar believes that Malaysia can replicate the UAE’s achievements while leveraging Binance’s expertise to foster digital finance development.
“This is not just about approval but expediting transformation,” Anwar stated, advocating for a modernized financial system. The proposed plan includes nurturing talent, building industry competence, and creating a conducive environment for digital finance.
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Cabinet Paper on Blockchain Policy Progresses
Binance co-founder Changpeng Zhao clarified that discussions with Malaysian officials covered the broader cryptocurrency sector rather than Binance-specific projects. Talks addressed regulatory frameworks, potential risks, and cross-border collaborations, laying the foundation for a forward-thinking approach to blockchain technology.
That said, A cabinet paper outlining the initiative is currently in progress, reflecting Malaysia’s intention to align with global digital finance trends. The move is expected to boost economic growth and enhance Malaysia’s role in the blockchain ecosystem.
Regulatory Landscape in Malaysia
In Malaysia, cryptocurrency is regulated by the Securities Commission (SC), which classifies digital assets as securities under existing laws. While cryptocurrencies are legal, they are not recognized as official tender or payment instruments by the central bank.
Businesses operating in the crypto space must comply with Malaysia’s income tax laws, ensuring alignment with local regulations.
Related: Crypto Exchanges Ranked: Binance Leads Spot Volume in 2024
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