LETTER | Policy confusion on cryptocurrencies

LETTER | Can the government clarify what is its position on cryptocurrencies? 

Bank Negara has clearly stated that digital currencies are not a legal tender in Malaysia. 

It said the digital currencies are not covered by prudential and market conduct standards that are applicable to financial regulations regulated by the central bank.

The Securities Commission Guidelines on Digital Assets clearly states that “digital currencies and digital tokens are not recognised as a legal tender nor as a form of payment instrument that is regulated by Bank Negara”.

Yet, the Securities Commission is registering companies involved in cryptocurrencies. Is the Securities Commission promoting the sale of illegal tender?

What is the message that the government is informing the Malaysian consumers? 

What one regulator clearly states as illegal, another regulator registers agencies promoting illegal currency?

The government policy is thus very confusing for consumers. 

Admittedly, that the nature of this kind of currencies means that the sellers can, through the internet, reach a wide audience, by-passing regulators. 

That is no excuse for the government to make a clear and consistent stand on what is its position on the legality of this kind of currency.

Consumers who deal in cryptocurrency, do so at their own risk. 

They are well aware that it is not regulated by the Malaysian regulators. That much is clear. 

Thus for a regulator to register a company promoting cryptocurrency may give the impression that the regulator is managing the risks and that consumers will be protected. 

This may create a false sense of security. This may promote dangerous risk-taking by consumers.

Will the government make a clear and consistent stand? 

Can the regulators get their acts together? 

PAUL SELVA RAJ is the chief executive officer of the Federation of Malaysian Consumers Associations (Fomca).

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.