Malaysia Eyes Crypto Regulations to Modernize Financial System

Malaysia is exploring the potential of cryptocurrency regulation as part of a strategy to modernize its financial system.
Prime Minister Datuk Seri Anwar Ibrahim recently discussed the idea with officials in Abu Dhabi and Binance founder Changpeng “CZ” Zhao during his visit to the UAE. These talks centered on positioning Malaysia to adapt to the rapidly evolving global financial landscape.
Anwar stressed the importance of embracing digital finance to ensure the country doesn’t fall behind. He described the shift as a necessary break from outdated financial models, emphasizing the urgency of staying competitive in an increasingly digital world.
Collaboration with the UAE was highlighted as a key component in shaping Malaysia’s crypto policy. Anwar noted the need for detailed discussions and comprehensive planning to address regulatory and operational challenges. This would involve input from entities like the Treasury, Securities Commission, and Bank Negara Malaysia.
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The move comes amid increased scrutiny of the crypto industry by Malaysian regulators. Recently, the Securities Commission ordered Bybit to cease operations and added several platforms, including Atomic Wallet and KuCoin, to its alert list for operating without registration. Despite this, Anwar’s focus on innovation signals a potential shift in Malaysia’s approach, aiming to balance regulation with fostering growth in the digital asset space.