Bank Negara issues alert about Coinzer

PETALING JAYA: Bank Negara has issued an alert about the cryptocurrency platform called Coinzer as digital currencies are not legal tender in Malaysia.

It said it does not authorise or endorse Coinzer.

“The use of the Bank Negara logo and Jata Negara on the proposed physical coin design, white paper and website https://www.coinzer. co/ is unauthorised,” it said.

Bank Negara has advised the public to exercise caution and carefully evaluate the risks associated with investment in digital currencies.

“Digital currencies are not legal tender in Malaysia. Accordingly, digital currencies are not covered by prudential and market conduct standards or arrangements that are applicable to financial institutions regulated by Bank Negara,” it said.

Meanwhile, in response to Bank Negara’s caution, Coinzer said the physical coin’s design was based on a conceptual design, which was initially intended to be used as a token of appreciation to its partners and contributors.

The company said the physical coin design proposal, however, has been removed from its latest edition of Whitepaper published on its official website on March 7 “since we realised that the proposed conceptual design uses the Bank Negara logo and Jata Negara in which should not be used without proper authorisation”.

Coinzer said the Blockchain technology and cryptocurrency were new and a mostly unregulated industry.

Coinzer pointed out that regulators in many countries especially Malaysia were aware that this new technology and financial innova- tion would not only enhance productivity of economic activities, but also make financial intermediation more seamless.

“Coinzer is working closely with the Malaysian government and the relevant authorities to acknowledge and approve our operation in Malaysia, as well as to help them better understand both Coinzer and the industry more broadly on how cryptocurrency platforms like Coinzer work, how Coinzer will help build a better economy for Malaysia and how other countries are proposing regulation,” it said.