Navigating the Cryptocurrency Maze: A Comprehensive Analysis of Regulatory Frameworks in Malaysia
Abstract
Cryptography is widely used in modern communication to ensure secure data transmission, online banking, and e-commerce. The presence of digital currency aids in removing intermediaries and the associated processes and costs of the middle person or platform. At present, Bank Negara Malaysia is yet to recognise digital currency as a legal tender. Despite the benefits, there are hidden risks associated with the usage of digital currency. This study aims to provide an in-depth analysis of the existing regulatory framework for cryptocurrencies in Malaysia and proposes recommendations for enhancing regulatory effectiveness and promoting innovation in the digital asset space. This article examines the regulatory challenges faced by Malaysia in balancing the promotion of financial innovation through cryptocurrencies while ensuring adequate investor protection and market integrity. This study adopts qualitative research by doctrinal legal approaches in analysing the current legal practice, the relevant statutes, and the viability of the Malaysian legal framework. Drawing insights from Malaysia's cryptocurrency regulatory framework, this study offers valuable lessons on effective governance strategies for digital assets in a rapidly changing financial landscape.
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