The Malaysian Prime Minister recently announced that the government will explore policies to regulate the digital finance sector to improve the country’s outdated financial system, following meetings with leaders from the United Arab Emirates (UAE) and Changpeng Zhao, the founder of the crypto exchange Binance.
Prime Minister Discusses Crypto Regulations With CZ And UAE Gov’t
The New Straits Times reported that the Malaysian government is considering a crypto policy to establish a clear regulatory framework in the country and “eventually see cryptocurrency and blockchain technology recognized in the country.”
Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, revealed he had discussed how to move forward with crypto regulations with Binance founder Changpeng “CZ” Zhao and the Abu Dhabi government during his three-day official visit to the UAE capital.
We have talked about digital transformation, data centers, and artificial intelligence (AI). We now face demands which require us to think about making significant changes. I had lengthy discussions with the Abu Dhabi leadership and Changpeng Zhao, co-founder of the world’s largest cryptocurrency platform Binance.
Anwar disclosed he had proposed that Malaysian agencies, including the Securities Commission, Treasury, and Bank Negara Malaysia, study how the country can explore the industry and its regulations so that the Malaysian market isn’t “left behind” but can “safeguard the people’s interests and prevent leakages.”
He noted that the industry’s quick evolution required the country to be equally fast to depart from its “old financial system.” The Malaysian Prime Minister called the new approach a “radical departure from the old ways.”
Malaysian Government To Follow UAE’s Lead
To Anwar, the country can’t “sit idly by and wait,” reasoning that the crypto industry’s innovation is “just like AI, which would revamp the financial world.” He argues that Malaysia should not “later be forced” to adapt and adopt cryptocurrencies when other countries have already done so, citing the UAE as an example.
Reportedly, the Prime Ministers stated that, as leaders in the field, the UAE leaders consider they can build close cooperation with Malaysian authorities to formulate the crypto regulations.
Anwar explained that Malaysia would not be starting their crypto policy from scratch, as the government would rely on the experiences of others like the UAE and Binance. “We need to discuss this in detail, leave behind the old business model, and give meaning to this digital finance policy,” he added.
According to the report, he also hopes that the country will be more open to innovation and wants to expedite the approval process.
However, he emphasized that the crypto policy would require comprehensive studies from the country’s agencies to address concerns and possible risks. He explained that the agencies must develop competency, personnel must be trained, and financial players must participate.
What is pertinent is that we have excellent relations with the UAE. We told them that we would move on this on the condition that we work as partners to ensure that things are on track.
The Prime Minister concluded that a paper would be drafted and presented to the cabinet for endorsement soon.
