The cryptocurrency conundrum – Rajan Navaratnam

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“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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