A statutory securities regulator and watchdog in Malaysia has recently revealed the plans that the country will take to regulate the cryptocurrency market within the country. in a speech given at a conference in Kuala Lumpur, the Securities Commission Malaysia Chairman Ranjir Ajit Singh recently stated how the country feels regarding the digital finance market.
He stated that the authority is watching the cryptocurrency market carefully by “reviewing relevant regulations and guidelines to facilitate functional and effective use cases of digital assets in the capital market.” He also stated that the oversight will be given to “secondary market trading of established cryptocurrency and digital assets.”
Singh went on to state at the conference that “the interest level and demand for cryptocurrency is on the rise and it is important for the regulators to acknowledge and embrace this trend… We hope to be able to have it [regulations] in a few months, but I am hesitating to give a specific timeframe.” The official further showed how Malaysia is attempting to adopt regulatory bodies that will help to build the framework on the project.
Singh also stated that there may be a partnership with Bank Negara Malaysia, the country’s central bank. He further stated that “Together with the BNM, we will look at the area carefully to apply the right framework. The SC is in charge of secondary markets, therefore our position on the cryptocurrency trading is to craft regulations that the trading venues have the right conditions in place for market integrity, as well as investor protection purposes.”
This regulatory move will help to relieve pressure on the cryptocurrency traders within the country. As it is currently a heated debate as to how to regulate the industry. The hopes are high that this regulation will help to change the dynamic of the cryptocurrency market within the country.