Go through Central Bank before launching any cryptocurrency: Finance Minister, Malaysia
Malaysian Finance Minister, Lim Guan Eng has reaffirmed the fact that those who are looking to issue cryptocurrency must go through the nation’s central bank, Bank Negara Malaysia (BNM). As per the New Straits Times report, the Finance minister made this remark while answering while answering a question from the member of parliament Dr. Tan Yee Kew concerning potential cryptocurrency risks.
The Finance Minister emphasized the fact the government and the nation’s central bank must be careful with the introduction of any new cryptocurrency, as the state financial regulator is still busy trying to learn more about such new technologies and ensure the stability of the nation’s financial sector.
According to the report, earlier this month, Federal Territories Minister Khalid Abdul Samad announced that the paperwork for government-backed cryptocurrency has been done and it will soon be presented to BNM and the Prime Minister Tun Dr. Mahathir Mohamad. It was also reported that the Harapan Coin, is all set to become the world’s first political fundraising platform that will use both blockchain and cryptocurrency.
This decision by the government has faced some strong criticism from various sectors of the society with the civil society group Centre for a Better Tomorrow (Cenbet) questioning the government for being “overly eager” to implement “trendy but untested schemes.”
While there are others who worry that the government-backed cryptocurrency would give a wrong impression and it could hurt public perception when it comes down to cutting down corruption.
Member of Parliament Fahmi Fadzil said earlier in November how the government had been advised to wait for clearer crypto and political financing stipulations before introducing Harapan Coin.
Earlier at the Dewan Rayakat, Lim also said that the Global Financial Integrity report placed Malaysia at the 10th position among developing countries for its US$444.6 billion in the illicit monetary outflow from 2005 to 2014.
He said that the main methods used for this illicit monetary outflow were income tax evasion, customs tax and duty evasion, smuggling of forbidden goods, and illegal outflow of cash
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