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Malaysian Central Bank released cryptocurrency exchange regulation, allowing businesses to use cryptocurrencies

The Malaysian Central Bank has released a new regulatory regulation on crypto currency exchanges.

On Thursday, Bank Negara Malaysia at the official website on announced this new draft requires public participation in the measures aimed at easing monetary encryption money laundering and financing of terrorism.

After months of efforts, these proposed regulatory requirements require companies to verify their client identity, monitor transactions and report any suspicious activity to the Malaysian authorities. In addition, companies must report usage statistics to the central bank.

If approved, the rule will apply to all individuals or companies that trade cryptocurrencies on behalf of others. Although regulators recognize that businesses can use cryptocurrencies, officials in the country still do not recognize cryptocurrencies as legal tender.

The draft provides:

"Citizens are advised to carry out the necessary due diligence and assessment of the risks involved in the processing of digital currencies, as well as those entities that provide digital currency-related services."
The National Bank of Malaysia is receiving written feedback on this draft, deadline January 14, 2018.

Last month, Muhammad Ibrahim, governor of the central bank, explained that these regulations are intended as a tool to stop the transfer of illegal funds. Although these regulations apply only to exchanges - "These exchanges are currently considered as 'reporting institutions' - the country's securities regulator is working on creating a framework.