The cryptocurrency market has been growing steadily in South Korea, Japan, the USA, and even India. Malaysia is not left out of this growth. The country is currently in the process of creating the regulatory framework to allow its citizens to adopt, trade, and invest in cryptocurrencies. The Malaysian government has been considering the legalization of cryptocurrencies for a long time, but is yet to take any decision. However, the latest news that the country is likely to legalize cryptocurrencies sooner than expected may have ignited some small hopes in the east Asian country.
Malaysia is a country of over 30 million people. It is also home to some of the world’s most popular cryptocurrency exchanges in the region. However, the country is not known for its cryptocurrency adoption. Despite its large population, Malaysia has a very small cryptocurrency exchange trading volume of US$1 Mn.
What is Malaysia Trying to Do?
The Malaysian government has been interested in the cryptocurrency market for some time. In fact, the country held its first cryptocurrency and blockchain-themed event in 2017. The event aimed to attract talent in the cryptocurrency market and provide a platform for businesses to showcase their offerings at the same time. The government is also trying to get a better understanding of the market to improve its regulations.
On December 12, 2018, the Malaysian government issued the Proclamation on Recognising Cryptocurrencies. The Proclamation opens the doors for cryptocurrencies to be legally recognized in Malaysia. However, the Proclamation has not been implemented as of yet. It is unclear when the government will implement the Proclamation as well as how it will be implemented. It is possible for the whole process of legal recognition of cryptocurrencies to be completed by a single Cabinet meeting.
The Malaysian Government’s Cryptocurrency Legalization Plan
The Malaysian government has been considering the legalization of cryptocurrencies for a long time. In its earlier stage, the government was even considering the outright ban of cryptocurrencies in the country. However, after finding out more about the market and the positive potential benefits of cryptocurrencies, the Malaysian government realized that it could work with the cryptocurrency market. It eventually moved towards legalizing cryptocurrencies in the country.
The Proclamation on Recognising Cryptocurrencies issued by the Malaysian government is a step in the right direction. The Proclamation does not regulate cryptocurrencies per se. It merely legalizes the usage and trading of cryptocurrencies in the country. In order for cryptocurrencies to be legal in the country, the Malaysian government needs to implement the Proclamation.
Malaysia’s Cryptocurrency Market Outlook
Malaysia’s current cryptocurrency market outlook is very positive. The country is currently home to some of the world’s most popular cryptocurrency exchanges. Moreover, these exchanges have good trading volumes. In fact, the world’s largest cryptocurrency exchange, Coinify, is located in Malaysia. This indicates that the growing adoption of cryptocurrencies in Malaysia is very likely to continue. Malaysia also has a growing number of cryptocurrency-related businesses.
Conclusion
Crypto adoption by Malaysia is growing rapidly. Malaysia’s cryptocurrency market outlook is also very positive. The country is home to some of the world’s most popular cryptocurrency exchanges as well as growing number of cryptocurrency-related businesses. Malaysia is likely to legalize cryptocurrencies sooner than expected. The Malaysian government is actively considering the legalization of cryptocurrencies in the country. This may open the doors for cryptocurrency trading in Malaysia. Malaysia’s cryptocurrency market outlook is very positive and is likely to continue.
