In Malaysia came into force the new rules of crypto-currency regulation
Last week, Malaysia's new guidelines on combating money laundering and combating the financing of terrorism (AML / CFT) came into force. They pay special attention to crypto-currencies. The new rules force the Malaysian crypto exchange to fulfill KYC mandates, including the collection of ID documentation.
Guidelines AML / CFT for crypto-currencies – Aim "Zoom […] Transparency"
The stated policy objective of Bank Negara Malaysia is to "ensure effective measures against money laundering and the risks of terrorist financing associated with the use of digital currencies", in addition to "enhancing the transparency of digital currency in Malaysia."
The new policy guidelines state that "promoting greater transparency in the use of digital currencies serves to protect the integrity of the financial system and strengthen incentives to prevent their abuse against illegal activities"
The legislation came into force on 27 February, when Bank Negara Bank stated that it "accepted" the feedback received during the public consultations on the project published 14 December 2017. "The bank added that the feedback received" was mainly related to the obligations imposed on digital currency exchangers, including companies providing intermediary services using crypto-currency. "
In Malaysia, crypto-exchange exchanges implement the requirements of KYC
The policy document states that the Malaysian crypto exchange "is required to conduct thorough verification of customers making transactions when the reporting authority establishes business relations with the client and when reporting agencies have suspicions of money laundering or terrorist financing."
The provisions prescribe that the Malaysian virtual exchangers collect the full name, address and date of birth of all customers, in addition to the ID documentation. The political document also states that "any person offering services for exchanging digital currencies for money or for other digital currencies is subject to obligations in accordance with the Law on Combating Money Laundering, Antiterrorism Financing and the Receipt of Illegal Activities of the 2001 Year."
Bank Negara Malaysia confirmed that virtual currencies are not recognized as legal tender in Malaysia. Thus, the bank stated that "digital currency enterprises are not covered by legal norms and market rules […] applicable to financial institutions regulated by" Negara Bank of Malaysia ".
Author: Yevgeny Yakubenko, Analyst Freedman Club Crypto News
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