Special Criminal Laundering and Prevention of Terrorism Financing (AML / CFT) legislation entered into force for the crypto currencies that Malaysia has prepared. The new regulation requires crypto money exchanges to be dependent on KYC and ID verification.
Malaysia’s New Crypto Money Arrangements Increase Transparency
According to Bank Negara, Malaysia is aiming to increase transparency in digital currency transactions with this new legislation, as well as to prevent money laundering and terrorist financing activities using these currencies.
The legislation entered into force on 27 February, following the evaluation of the draft report on 14 December 2017. In addition, Bank Negara noted that the feedback is mainly related to the obligations of the crypto money exchanges.
Malaysia Crypto Money Stocks Will Follow KYC Rules
According to the legislation, if the auditors suspect any illegal situation, they will be able to carry out detailed reviews on the clients and employees of the crypto money exchange.
In addition, according to new regulations, Malaysian crypto money exchanges are now obliged to collect their full name, full address, and birth date as well as their identity cards. However, with the legislation, the institutions and individuals that provide all cryptographic money services now have to comply with the requirements of the Law on Prevention of Money Laundering, Terrorism Financing and Illegal Benefits.
Bank Negara also reiterated that digital money transactions are not recognized as legal tender in Malaysia. Therefore, the bank also noted that digital money transactions are not covered by the bank’s prudential and market behavior standards applicable to financial institutions.