Malaysia’s government still hasn’t made up its mind on what to do with cryptocurrencies. The country’s finance minister last year warned companies not to issue new tokens, while waiting on the central bank to give clear advice. But Malaysia’s Federal Territories Minister this week said that the government is undecided on whether cryptocurrencies are legal or not.
A Legal Gray Area
Khalid Abdul Samad, Malaysia’s Federal Territories Minister, has said using cryptocurrency is “neither legal nor illegal.” The government is still considering the matter, he added, saying he could not push for a decision to be made. “People have asked me if these currencies are legal or illegal,” local media quoted him as saying. “At the moment, the answer is neither legal nor illegal as the situation is still unclear.”
Samad was involved in the invention of the harapan coin – a token invented to raise political funding for Malaysia’s ruling party, Pakatan Harapan, in preparation for the 2019 general elections. The country’s central bank, Bank Negara, still needs to approve the initiative.
But despite being a proponent of crypto, Samad said he could not sway the government either way. He added: “Yes, I was involved in the launch of harapan coin. However, I was not appointed as finance minister. Instead, I became federal territories minister. As the matter is not under my jurisdiction, I cannot push too much.”
Legislation Being “Put in Place”
Malaysia hasn’t been clear on the status of cryptocurrency for some time now. Currently bitcoin and other digital currencies aren’t recognized as legal tender in the country,