The cryptocurrency conundrum – Rajan Navaratnam

[superadmin]

“Who to himself is law, no law doth need, offends no law, and is a king indeed” – George Chapman

DEPUTY Finance Minister I Datuk Mohd Shahar Abdullah had recently stated that Malaysia has no intention of legalising cryptocurrency such as bitcoins due to a myriad of circumstances such as price fluctuations.

His statement had come about after the Communications and Multimedia Ministry had put forth the proposal that cryptocurrency ought to be recognised as legal tender.

The debate on cryptocurrency as the future of money was again ignited and had propelled into the international spotlight after Russia invaded Ukraine, raising questions over whether cryptocurrency would be used to circumvent sanctions imposed against Russia by the European Union and Western nations.

From a Malaysian perspective, whether cryptocurrency ought to be recognised as legal tender is for the government to decide on what is best for Malaysia. However, whether cryptocurrency is regarded as legal tender is not cardinal – but instead the government would have to act swiftly to enact and implement specific laws to deal with the rapid growth and use of cryptocurrency globally.

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[AlfonsoWilkins]

What do you guys think would be the best way for governments to regulate crypto transactions in such cases?

[RobertArias]

In Malaysia, it's definitely up to the government to decide how best to approach the issue. But I agree that while legal recognition could be important, creating a clear framework for handling crypto transactions might be just as vital. I had a personal experience where I tried buying some skins for CS:GO a while back, and they only accepted crypto. I wasn’t sure how to navigate it at first, but eventually, I managed to buy all M4A4 skins I wanted through a platform that let me use crypto for the transaction. It was a little tricky at first, but with the right legal guidelines in place, things like this could be more straightforward in the future.