Malaysian communications official calls on state to legalize crypto and NFTs

The Malaysian Ministry of Communications and Multimedia (KKMM) is reportedly supporting the adoption of cryptocurrencies, with the deputy minister calling on the government to legalize crypto.

Deputy Minister of Communications and Multimedia Datuk Zahidi Zainul Abidin has urged Malaysian regulators to legalize certain use cases of cryptocurrencies and nonfungible tokens (NFT), local news agency Harian Metro reported on Monday.

Zahidi pointed out that such measures would significantly support young people as the cryptocurrency industry becomes more and more popular among the younger generation. He also said the KKMM is exploring ways to increase youth participation in the industry.

The deputy minister noted that the decision on crypto regulation is up to Malaysia’s financial regulators, including the central bank and the Securities Commission Malaysia.

However, the ministry is willing to raise this issue because the crypto industry is the “business and finance program of the future, especially for young people now,” Zahidi said, adding:

“We hope that the government can try to legalize this issue so that we can increase young people’s participation in cryptocurrencies and help them in terms of energy consumption and so on.”

According to some sources, Zahidi suggested not only legalizing certain cryptocurrency transactions in Malaysia, but adopting cryptocurrency as legal tender.

The KKMM officials did not immediately respond to Coin-Crypto’s request for comment. This article will be updated pending new information.

In early March, Malaysian Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz . said repeated that payments in cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) were illegal in the country, as cryptocurrencies did not meet the universal characteristics of money.

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“In general, digital assets are not a good store of value and a medium of exchange. This is due to the fact that digital assets are vulnerable to volatile price movements due to speculative investments, the risk of theft due to cyber threats and lack of scalability,” he said.

The minister added that Bank Negara Malaysia was working on the possible introduction of a central bank digital currency and blockchain-related developments to respond to the growing trend in the digital asset industry.

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