Last week, Malaysia’s new Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) strategy guidelines specifically addressing cryptocurrencies came into effect. The new directives compel Malaysian virtual currency exchanges to mandate KYC adherence, including the store of ID documentation.
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New Malaysian AML/CFT Guidelines for Cryptocurrencies Aim to “Increase […] Transparency”
Bank Negara Malaysia’s phased policy objective is to “ensure that effective measures are in place against liquid assets laundering and terrorism financing risks associated with the use of digital currencies,” in reckoning to “increas[ing] the transparency of digital currency activities in Malaysia.”
The new policy guidelines assert that “Hyping greater transparency in the use of digital currencies serves to protect the integrity of the pecuniary system and strengthen incentives to prevent their abuse for illegal actions”
The legislation came into effect on February 27th, with Bank Negara Malaysia averring that it “[took] into account feedback received during the influential consultation period on the exposure draft released on 14 December 2017.” The bank combined that the feedback it received “mainly focused on the obligations imposed on digital currency exchangers, counting businesses providing intermediary services involving cryptocurrencies.”
Malaysian Cryptocurrency Securities exchanges to Implement KYC Requirements
The policy document states that Malaysian cryptocurrency exchanges “are ordered to conduct customer due diligence on all customers and the persons conducting the transaction when the come ining institution establishes business relationship with customer and when the appearing institutions have any suspicion of money laundering or terrorism financing.”
The orders mandate that Malaysian virtual currency exchanges collect the complete name, address, and date of birth of all customers, in addition to ID documentation. The procedure document also states that “any person offering services to altercation digital currencies either from or to fiat money, or from or to another digital currency is theme to obligations under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Prohibited Activities Act 2001″.
Bank Negara Malaysia reaffirmed that virtual currencies are not appreciated as legal tender in Malaysia. As such, the bank stated that “digital currency vocations are not covered by prudential and market conduct standards […] applicable to pecuniary institutions regulated by” Bank Negara Malaysia.
Do you think that regimes will be successful in attempting to increase the “transparency” of the cryptocurrency economy? Split your thoughts in the comments section below!
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