Malaysian Finance Ministry: we do not recognize crypto as legal tender

Deputy Finance Minister Il Yamani Hafez Musa noted that the government is studying the possibility of issuing a national digital currency

04.03.2022 - 10:35

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What’s new? Malaysian Deputy Finance Minister Il Yamani Hafez Musa stated that cryptocurrencies will not be recognized as legal tender. According to him, this decision is due to the fact that digital assets do not have the properties of a universal currency.

Information on The Star website

What does the government’s representative say? The deputy minister noted that the government is still studying the possibility of issuing a national digital currency, but there are no immediate plans in this regard. He said that cryptocurrencies are very volatile and added:

"Digital assets are not recognized as legal tender in Malaysia. This is because they do not exhibit characteristics of money. Cryptocurrencies are also not backed by any assets. Nor do they have central issuers like banks or monetary authorities."

Does Malaysia plan to regulate cryptocurrencies? Currently, the country’s authorities have no plans to regulate cryptocurrencies, but neither do they encourage their use. It is not yet clear how the government will address the issue in the future, but at the moment it is not ready to accept digital currencies.

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