Malaysian Ministry Urges Government To Legalize Crypto And NFTs

The minister believes that the move will benefit the younger generation greatly.
Malaysian Ministry Urges Government To Legalize Crypto And NFTs
  • Malaysia’s Deputy Minister of communications and multimedia has called on regulators to legalize cryptocurrencies and NFTs.
  • The official hopes to grow the participation of youths in the nascent market.
  • Some outlets believe that the minister also called for Bitcoin to be adopted as legal tender; this is yet to be confirmed.

A high-ranking member of Malaysia’s Ministry of Communications and Multimedia (K-KOMM) has urged the government to legalize cryptocurrencies and NFTs. The minister believes that the move will benefit the younger generation greatly.

‘The Business And Financial Program Of The Future’

A local Malaysian news website, Harian Metro, revealed earlier yesterday that the Deputy Minister of the country’s Ministry of Communications and Multimedia (K-KOMM), Datuk Zahidi Zainul Abidinhad called on regulators in the Asian country to legalize cryptocurrency and NFTs. The Deputy Minister is said to have made the statement when pressed on the government’s position on the increasingly popular trade of NFTs in the country.

Abidinhad believes that the legalization of cryptocurrencies will enable the younger generation who use these digital assets frequently to do so more easily, particularly on NFT marketplaces. The deputy minister has revealed that he and his party are committed to incentivizing the participation of young people in the nascent market.

While acknowledging that the responsibility rests with the Malaysian central bank and Securities Exchange Commission, he said there was a need for his ministry to speak up “because this is the business and financial program of the future, especially for young people now.” 

While this is the report from the local news outlet, some other outlets like Bloomberg have reported that the deputy minister’s suggestions go further to request that cryptocurrencies like Bitcoin be recognized as legal tender in the country. However, there is yet to be an official statement from the ministry.

Malaysia will join El Salvador, the only country to adopt Bitcoin as legal tender if this happens. In January, El Salvador’s president, Nayib Bukele, in a tweet aside from predicting Bitcoin would reach the $100k price point this year, also said two more countries will adopt the foremost cryptocurrency by market cap as legal tender.

Earlier this month, as reported by BH ONLINE, Malaysia’s Minister of Finance, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, clarified that cryptocurrencies were not to be used as payment solutions as they do not meet the universally accepted criteria to be seen as money. The minister cited issues like volatility and security risk.

“In general, digital assets are not a good store of value and medium of exchange. This is due to the state of digital assets that are exposed to volatile price fluctuations due to speculative investment, the risk of theft due to cyber threats and lack of scalability.”

While the minister showed no inclination to support the use of crypto as legal tender, he hinted that the Malaysian central bank, Bank Negara Malaysia (BNM), considered developing a CBDC.

He revealed that the apex bank had entered partnerships “with the Bank for International Settlements Innovation Hub and central banks in Australia, Singapore, and South Africa on the Dunbar Project to examine the potential of CBDCs to improve cross-border payments.”

Michael Boris
Michael Is A Blockchain Expert And Proficient Crypto Reporter At CoinJot Media With An Academic Degree In Journalism. Disclosure: He owns less than 1 BTC and less than 4 ETH. Contact: [email protected]