As Malaysia’s central bank tries to develop guidelines for cryptocurrencies like bitcoin, a blanket ban is still being considered according to its governor.
Muhammad bin Ibrahim (Bank Negara Malaysia (BNM) governor) was speaking to reporters on the 9th International Conference on Financial Crime and Terrorism Financing in Kuala Lumpur about upcoming regulations for the cryptocurrency sector.
''The central banker did not rule out a complete ban on cryptocurrencies'' reports The Malaysian Insight.
Ban? Unlikely
The idea of a complete ban comes in the aftermath of stringent regulations against the bitcoin and other cryptocurrencies in China. BNM’s Chinese counterpart, (the People’s Bank of China), is enforcing a complete ban on all ICO's in September. South Korea have decided to follow suit with a ban on ICOs.
However, it is still unlikely that Malaysia would actually carry out a sweeping ban on all cryptocurrencies. In a statement made in September to CCN Ibrahim was quoted as stating:
''We hope that by year end, BNM will be able to come out with some guidelines on cryptocurrency, particularly those related to anti-money laundering and terrorist financing. We want to ensure that there are clear guidelines for those who want to participate in this sector''.
When pushed by reporters to reveal more, Ibrahim confirmed the central bank would make clear its intentions before the end of the year.
“Just wait. Now is only October. In less than three months, we will give you the details.”
The central bank’s official stance on bitcoin, from 2014, quotes “the central bank does not regulate the operations of Bitcoin,” with the cryptocurrency “not recognized as legal tender.”Recently, Malaysia’s securities regulator issued a public caution over ICO investments soon after China’s sweeping ban.