Malaysia Explores Policy to Recognize Crypto After Talks with Binance CZ

Malaysia is set to explore a regulatory framework for crypto and blockchain technology. 

Prime Minister Datuk Seri Anwar Ibrahim recently held discussions with officials from Abu Dhabi and Changpeng Zhao (CZ), co-founder of Binance, to discuss crypto policies and the digital transformation of Malaysia’s financial sector.

These meetings, part of Anwar’s official visit to Abu Dhabi, highlight Malaysia’s interest in aligning with global trends in financial technology. Zhao took to social media to acknowledge Malaysia’s evolving stance on blockchain technology.

In his post, he clarified that the discussions were not explicitly focused on Binance but on broader issues impacting Malaysia’s crypto industry. They include regulations, policies, potential risks, and opportunities for cross-border collaboration

Malaysia’s new stance on blockchain. 👏

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 🔶 BNB (@cz_binance) January 15, 2025

Emphasis on Regulation and Safeguards

In his statement, Datuk Seri Anwar Ibrahim highlighted the need for comprehensive regulatory measures to oversee digital finance. He emphasized the importance of protecting public interests while preventing financial leakages. 

Anwar proposed that agencies such as the Treasury, Bank Negara Malaysia, and the Securities Commission undertake detailed studies to formulate a robust policy. He noted that embracing innovation, like artificial intelligence, could help modernize Malaysia’s financial systems and foster broader economic transformation.

Furthermore, the Prime Minister emphasized learning from established players, including the United Arab Emirates (UAE) and Binance. He noted that partnerships with experienced nations could accelerate Malaysia’s adoption of digital finance technologies.

Anwar’s remarks align with his broader call to expedite Malaysia’s transition toward a digital economy that departs from traditional business models.

Building on Existing Frameworks

Malaysia’s exploration of digital finance builds on existing efforts to regulate the crypto industry. In June 2024, the Inland Revenue Board (IRB) launched “Ops Token,” an initiative to address tax revenue leakage from crypto trading. 

The operation revealed undeclared trading activities, underscoring the need for stronger compliance measures. The IRB identified significant tax revenue losses and urged traders to declare their earnings promptly.