A new directive by Malaysia’s Finance Minister requires all crypto projects to seek central bank approval before going live. The Star Online quotes the minister who was speaking in Parliament.

In an answer to an MP, Lim Guan Eng, the Finance Minister said that Bank Negara Malaysia is the authority. “We need to be cautious as Bank Negara is the authority that handles and manages all forms of new currency technology.”

Crypto projects to seek central bank approval to avoid charges

The minister insisted that people should not try to introduce cryptocurrencies through their own mechanisms. Further, he said it is safe to wait for the central bank to conduct thorough research on the subject.

Eng said that the bank will have necessary guidelines after an in-depth research in cryptocurrency. According to Eng, going ahead with cryptocurrency projects in disregard of existing laws will be criminal. In that light he advised crypto projects to seek central bank approval before launching any project.

“This is where I wish to advise all parties, no matter who they are, intending to issue bitcoins or cryptocurrency, that they must refer to Bank Negara which is the authority that will have the final say on this new form of currency,” the Minister during the parliamentary session.

However, the Minister added that will embrace any form of currency so long as it remains within existing laws.

Harapan Coin

Interestingly, the response came after an MP, Datin Paduka Dr Tan Yee Kew sought directions on cryptocurrency. According to Dr. Tan, cryptocurrency could result in problems for national currency. Therefore, he was seeking government input on the steps in place to address the crypto issue.

The issues come in the wake of a pull and push regarding the launch of a political cryptocurrency. Dubbed Harapan Coin, the cryptocurrency is the world’s first crypto-based political fundraising platform.

According to the backers of the project, cryptocurrency will help with transparency and accountability. Further, the backers believe that the technology behind cryptocurrencies is a game changer and governments should adopt it.