Crypto Law In Malaysia

In 2021, the trading value of the digital asset and cryptocurrencies market in Malaysia rose to RM21bil in 2021 based on the Annual Report 2021 released by the Securities Commission.¹

With increasing interest in alternative assets, what is the legal position on cryptocurrency in Malaysia?

To give a better understanding of the laws involved, it is perhaps apposite to delve into the technology behind cryptocurrency. Cryptocurrency is essentially a medium of exchange, created and stored electronically in the blockchain. In other words, blockchain is what enables the existence of cryptocurrency, such as Bitcoin. What then is blockchain? Blockchain technology basically uses encryption techniques to control the creation of monetary units and to verify the transfer of funds without any central clearing authority.