Malaysia does not recognize the use of cryptocurrencies such as Bitcoin and Ethereum as a legitimate currency for use in day-to-day transactions, the Deputy Finance Minister II, Yamani Hafez Musa has clarified.
According to him, cryptocurrency is not a recognized payment instrument regulated by Bank Negara Malaysia (BNM) at the moment. "Cryptocurrencies are not suitable for use as payment instruments because these currencies do not exhibit the universal characteristics of money," he added.
"Generally, cryptocurrencies are not a good store of value and a medium of exchange due to the fact that cryptocurrencies are vulnerable to volatile price fluctuations and exposure to cyber threats and lack of scalability," he explained.
This was his answer to a question from Lukanisman Awang Sauni (GPS-Sibuti) who enquired about the government's stance on the use of cryptocurrency in daily transactions.
Many Malaysians have verged into the realm of cryptocurrencies as of late, even though the Bank Negara Malaysia does not currently regulate the operations of Bitcoin. So, why hasn't this stopped them?
