The Malaysian Ministry of Communications and Multimedia (KKMM) is reportedly pushing for the legal adoption of crypto and NFTs in Malaysia. This may come as a surprise though, especially as Malaysia’s minister of finance had earlier insisted that crypto payments remain illegal in the country.
KKMM Move To Legalize Crypto And NFTs In Malaysia
According to a local news report by Harian Metro on Monday, the deputy communications and multimedia minister Datuk Zahidi Zainul Abidin is proposing that appropriate authorities should legalize certain use cases of crypto and NFTs in Malaysia.
Firstly, Zahidi emphasized the need to keep abreast with the growing trend, particularly for the sake of the younger generation. In fact, he also added that the KKMM might have started exploring ways to ensure that more young people get involved in the industry.
Meanwhile, the deputy minister admits that the decision on crypto regulation rests on the shoulders of Malaysia’s financial regulators. And that includes both the central bank and the Securities Commission Malaysia.
Zahidi said in part:
We hope the government can try to legalize this matter so that we can expand the participation of young people in cryptocurrencies and help them in terms of energy consumption and so on.
Interestingly, some sources claim there is more to Zahidi’s proposal and its not only about legalizing crypto and NFTs in Malaysia. Just as the case is in El Salvador, Zahidi might be hoping that Malaysia also adopts cryptocurrency as legal tender.
Cryptocurrencies Are Illegal — Malaysia’s Finance Minister
Recall that earlier in March, Malaysia’s finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz insisted that any payments in cryptocurrencies like Bitcoin (BTC) and Ether (ETH) were illegal in the country. Although at the time, he cited that cryptocurrencies did not meet the universal characteristics of money. “In general, digital assets are not a good store of value and a medium of exchange,” he said.
His reason may be understandable however, especially given that digital assets are known to be quite volatile in nature.
Instead, the minister noted that Bank Negara Malaysia is already working on potentially introducing a central bank digital currency. And in addition to that, blockchain-related developments are also being carried out, he said.
Will the Malaysian government also adapt to its younger generation like President Zelensky of Ukraine did? Will it not?
Get more details here as the crypto situation in Malaysia continues to unfold.