KUALA LUMPUR – Cryptocurrencies in Malaysia need clearer regulatory frameworks in order to facilitate the participation of institutions, said MX Global Sdn Bhd chief executive officer Datuk Fadzli Shah.
He stated during the Invest ASEAN 2022 Conference held virtually recently, that the regulatory and licensing process is the root of the issue that could hinder the adoption of cryptocurrencies within Malaysia’s institutions.
“In the Malaysian context, cryptocurrencies are classified as securities (category) and this would naturally be within the purview of the Securities Commission Malaysia. However, there is always an element of optimisation that is under Bank Negara Malaysia.
“Therefore, in jurisdictions such as Malaysia, where the two regulators do not align, corporations seek clarity about the matter. As a result, it will significantly slow down institutional adoption,” he explained.
The panel that he spoke at was titled ‘Institutional Crypto Trading in ASEAN’ which, under the conference, was on June 8-9 this year in various countries like Kuala Lumpur, Singapore, Bangkok, Jakarta, Manila, and Ho Chi Minh City through a hybrid approach.
On the other hand, Samar Sen, Talos head of Asia-Pacific, believes that the regulations will play a significant role in cryptocurrencies in the path moving forward to create a responsible ecosystem for frontier markets.
He highlights the significance of regulatory compliance and further urged investors to be involved in the cryptocurrencies’ space in a secure and safe manner.
“Different regulators will legislate differently, and I have currently observed that different nations are moving at different paces which is somewhat frustrating.
“Therefore, we require education and upskilling in all areas, whether it be people’s compliance and the leadership of the various financial institutions involved in cryptocurrencies,” he explained.
Additionally, he also stated that the balance is delicate between allowing innovation and building the future of finance while at the same time safeguarding investors from bad things.
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