Malaysia could soon join other nations that are working on policies that govern the integration of cryptocurrencies and blockchain-related technologies into their financial systems. Earlier this week, Malaysian Prime Minister Datuk Seri Anwar Ibrahim met with UAE officials and Binance representatives to discuss the formulation of a supportive policy framework for cryptocurrencies. The Malaysian PM was attending the Abu Dhabi Sustainability Week (ADSW 2025), where he said that he wishes to ensure that the investor interest in Malaysia is protected, which can be achieved with appropriate regulations.
During the event in Abu Dhabi, the Malaysian PM also met with Changpeng Zhao, the co-founder and former CEO of Binance. The two reportedly spoke about the steps that Malaysia could incorporate to become more acquainted with Web3 technologies.
Malaysia’s new stance on blockchain. :clap:
The discussions were not about Binance but about the crypto industry and Malaysia, including regulations, policies, risks, and collaborations between industries and across national borders. Forward!https://t.co/ppgrYA0ITH
— CZ :large_orange_diamond: BNB (@cz_binance) January 15, 2025
The Malaysian Securities Commission (SC) has acknowledged the Prime Minister’s vision for crypto that sees Malaysia becoming a key name in the evolving digital finance ecosystem, according to a report.
Datuk Mohammad Faiz Azmi, the chairperson of the commission said that all relevant financial bodies in Malaysia must come together to accelerate the development of Web3-related policies. Azmi also reportedly noted that the SC has been working to give shape to its Web3 sector since 2019.
Crypto in Malaysia
Data by Worldometer shows that the current population of Malaysia is over 35 million. Citing a survey data by Oppotus, Statista estimates that 30 percent of Malaysian respondents held a digital asset or cryptocurrency in the fourth quarter of 2023.
With the crypto industry seemingly witnessing a global expansion, Malaysian authorities have been monitoring the use of cryptocurrencies in the country.
In June 2024, the Malaysian federal agency Inland Revenue Board (IRB) reportedly conducted raids at multiple locations, having identified firms that were not reporting their crypto-related engagements.
Malaysian law enforcement authorities have also conducted crackdowns on illegal crypto mining hubs. Between 2020 and 2022, Malaysian authorities said it arrested 627 people since for stealing electricity to power their crypto mining operations. Crypto mining equipment worth MYR 69.8 million (roughly Rs. 125 crore) were also confiscated by the Malaysian police during the same period.
Crypto exchanges looking to operate in Malaysia need an official approval from the SC. The regulatory body maintains a list or registered market operators to make sure that investors are safeguarded against financial risks.
