Predictions About Cryptocurrency Implementations In Malaysia Are Debunked

• Malaysia has an estimated 1 million crypto users, accounting for about 3% of the country’s population.

• The Malaysian Anti-Corruption Commission (MACC) had previously busted a bitcoin mining cartel, as the issue of unlawful mining in the country continues to increase.

• The country’s tourist rate has improved dramatically since its introduction, with a 30 percent increase as of Q4 2021.

After a local media article claimed that Malaysia would recognise cryptocurrency as legal tender, the country’s Deputy Finance Minister dismissed the claims. Malaysia’s Deputy Finance Minister, I Mohd Shahar Abdullah, recently stated that the country does not intend to recognise cryptocurrency as legal tender.

The Central Bank In Honduras Likewise Dismisses Rumors

Due to various constraints, cryptocurrencies such as Bitcoin are not suited for use as a payment instrument, he stated. The government also pointed out the hazards connected with the volatile asset class, which it claims makes it inappropriate to be extensively utilized as a digital form of money, debunking any rumors to the contrary.

El Salvador became the first government in the world to recognise Bitcoin as legal cash in early 2021, preserving its position as the only country to have formally claimed the title. The country’s tourist rate has improved dramatically since its introduction, with a 30 percent increase as of Q4 2021. So, what led to the speculation that Malaysia will follow in El Salvador’s footsteps?

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The Ministry of Communications and Multimedia Ministry (K-KOMM) has suggested legalizing NFTs and other crypto mining activities, according to Malaymail, the country’s local news outlet. We hope the government would authorize and legitimize this so that the youth will be more interested in cryptocurrency, Deputy Minister Datuk Zahidi Zainul Abidin allegedly told lawmakers.

What Zainul Abidin appears to be requesting is the government’s official legal position on Bitcoin and other crypto assets, which is distinct from just adopting Bitcoin or any other form of cryptocurrency as legal cash. The Central Bank of Honduras (BCH) issued a statement earlier this week putting to rest some similar rumors: Bitcoin is a virtual financial assets that is currently unregulated in our country and does not have the status of legal money in most countries.

Malaysia’s Fight Against Mineral Extraction

BCH also clarified in its statement that it does not supervise or guarantee the operations carried out with cryptocurrencies as a means of payment in the national territory, and that Every handling different such form a digital property was conducted out towards the danger as well as obligation of all those who conduct this out. Malaysia has an estimated 1 million crypto users, accounting for about 3% of the country’s population. The country’s central bank, Bank Negara Malaysia, and, of course, the Securities Commission are currently in charge of the crypto sector.

Indeed, illegal crypto mining operations have been the Asian country’s dark side, with the country reporting a record high of illegal mining in just 2021. A person was also arrested earlier this month for allegedly stealing electricity for cryptocurrency mining operations, according to reports. The Malaysian Anti-Corruption Commission (MACC) had previously busted a bitcoin mining cartel, as the issue of unlawful mining in the country continues to increase.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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