The Malaysian central bank said it will not ban Bitcoin and will introduce cryptocurrency regulatory policies before the end of the year

There are a number of central banks that are against cryptocurrencies and everything they represent. At the same time, these same institutions want to create their own digital currencies in the future.

The Bank Negara Malaysia (BNM) is exploring ways to regulate cryptocurrencies. It is reported that the central bank will take relevant measures by the end of 2017. However, no one knows what they will do.

In any case, regulating cryptocurrencies is not easy. After all, no one can regulate something that does not have a leader or a central authority.

Bitcoin and altcoins have caused a lot of trouble for regulators around the world. Especially now that Bitcoin prices are rising, some countries want to completely stop the operation of cryptocurrencies. The only thing they can do is to regulate centralized exchanges and other service providers.

Malaysia's central bank won't ban Bitcoin

It remains to be seen what steps Malaysia will take in this area. The Malaysian central bank has made its position clear yesterday. The agency plans to formulate cryptocurrency regulatory rules by the end of this year. The time seems tight, but they should have been formulating relevant rules for some time. Setting rules for Bitcoin activities in a country always brings some interesting results.

The Governor of the Central Bank of Malaysia, Muhammad Ibrahim, has announced that the country will release regulatory guidelines for cryptocurrencies by the end of the year.

He said cryptocurrencies, or digital currencies, have attracted the attention of central banks around the world.

He was interviewed at the Global Financial Institutions Development Seminar held in Kuala Lumpur yesterday:

We hope that by the end of the year, the central bank will be able to come up with some policies on cryptocurrencies, especially those related to anti-money laundering and counter-terrorist financing.

We want to ensure that participants in this industry follow clear rules.

Indeed, cryptocurrencies have attracted a lot of attention. In addition to consumers and enthusiasts, central banks have also begun to pay attention to cryptocurrencies. Given the risks that Bitcoin poses to the traditional banking industry, regulation is the only option.

Unfortunately for the financial sector, they cannot regulate Bitcoin itself. Centralized service providers may change, but Bitcoin will continue to exist.

No one knows what plans the Malaysian central bank will deploy. However, it is clear that companies in the country will need to comply with new AML (anti-money laundering) regulations. Bitcoin may be considered a currency in such rules, which will be an interesting development.

The Malaysian central bank does not seem to be banning Bitcoin activities. It is just that the relevant rules will become stricter, but it is too early to speculate on the specific rules.