Emily Walker
The Prime Minister of Malaysia has recently declared plans to look into regulatory policies for the digital finance sector. This initiative aims to modernize the current financial system in the country, following discussions with leaders from the United Arab Emirates (UAE) and Changpeng Zhao, the CEO of Binance.
Engagement with Binance and UAE Officials on Crypto Policy
According to The New Straits Times, the Malaysian administration is contemplating the establishment of a clear regulatory framework for cryptocurrency and blockchain technology within the country.
During his official three-day visit to Abu Dhabi, Prime Minister Datuk Seri Anwar Ibrahim held discussions with Zhao, focusing on the future of cryptocurrency regulations.
We engaged in discussions about digital transformation and the role of data centers and artificial intelligence (AI). The current demands necessitate significant changes, and I had extensive talks with the Abu Dhabi leadership and Changpeng Zhao, the co-founder of Binance.
Anwar proposed that key Malaysian agencies like the Securities Commission and Bank Negara Malaysia examine the industry and its regulations to ensure the country keeps pace with global developments and protects citizens’ interests.
He stressed that the rapid changes in the sector necessitate a shift away from the traditional financial system, framing this as a “radical departure from the old ways.”
Learning from UAE’s Example
Anwar believes that Malaysia must actively engage in this evolving landscape instead of remaining passive, similar to the advancements in AI that are reshaping finance. He wants to avoid situations where Malaysia is compelled to embrace cryptocurrencies after other nations have adapted.
The Prime Minister mentioned that UAE leaders, being frontrunners in crypto regulation, expressed a desire to collaborate closely with Malaysian officials to develop regulatory measures.
He specified that Malaysia wouldn’t create its crypto policy from the ground up but would draw from the experiences of others, including the UAE and Binance. “We must engage in detailed discussions, move past outdated business models, and instill significance into our digital finance policy,” he said.
Anwar aspires for Malaysia to embrace innovation more vigorously and streamline its approval processes.
Nonetheless, he stressed the importance of thorough studies conducted by relevant agencies to tackle concerns and potential risks. Competency development, personnel training, and active participation from financial entities are crucial for this initiative.
It is essential that we maintain strong relations with the UAE. We have conveyed that we will proceed with this, provided we work as partners to keep everything on track.
In conclusion, the Prime Minister mentioned that a proposal would be drafted and presented to the cabinet for approval in the near future.