Digital currencies worth RM75m transacted each month

KUALA LUMPUR: Bank Negara said there are an average of RM75mil in transactions of bitcoin and other cryptocurrencies each month in Malaysia, on four digital currency exchanges.

Deputy Governor Abdul Rasheed Ghaffour said yesterday that the four actieexchanges in Malaysia were Luno, Coinhako, XBit Asia and PinkExchange.

He said the central bank would be meeting with the four cryptocurrency exchange operators next week.

Abdul Rasheed stressed that digital currencies were not legal tender in Malaysia, and said that the central bank was not stopping the trading of bitcoin.

“We need to strike a balance between public interest and integrity of the financial system. A ban would just curb innovation and creativity,” he said at a media briefing.

Bank Negara has issued an exposure draft on the invocation of reporting obligations on digital currency exchange as reporting institutions under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA), for public consultation.

This is to ensure effective measures were in place against money laundering or terrorism financing risks associated with the use of digital currencies, as well as to increase the transparency of digital currency activities in the country.

When asked on the bitcoin price movement, Abdul Rasheed agreed that it is a bubble.

“If you look at the price, it is clear that it is a bubble... Anything with high returns have high risk,” he said.

The price of bitcoin has surged this year, rising more than 1,000% to above US$16,000 a unit this week.