Whither policing cryptocurrency in Malaysia?
Cryptocurrency, like Bitcoin, is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. It is an emerging financial technology enabled by innovation, increasingly popu...
| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
IIUM Press, International Islamic University Malaysia
2017
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/61269/ http://irep.iium.edu.my/61269/ http://irep.iium.edu.my/61269/1/61269_Whither%20Policing%20Cryptocurrency.pdf http://irep.iium.edu.my/61269/7/61269_wither%20policing%20cryptocurrency_WOS.pdf |
| Summary: | Cryptocurrency, like Bitcoin, is a digital currency in which encryption
techniques are used to regulate the generation of units of currency and
verify the transfer of funds, operating independently of a central bank.
It is an emerging financial technology enabled by innovation,
increasingly popular among global Internet users, and more
interestingly, it challenges the existing financial and regulatory rules
on the currency and payment systems of the world today. On the other
side, certain cryptocurrency like Bitcoin, have been actively used as
payment tools for illicit transactions. Both the “promising” and
"challenging" faces of cryptocurrency trigger causes for concern for
policy makers, not only from financial sector, but also legal and
technological sectors. The decentralised nature of cryptocurrency
creates unique problems for the government to regulate or impose any
regulatory requirements. This article argues that, in order for Malaysia
to remain at the forefront of financial and digital innovation, it is
timely to look at the question on whether to formulate certain policy
and regulatory framework on the use of cryptocurrency in Malaysian
market. The answer can pave the way for Malaysian digital citizens to
potentially grab the opportunities made possible by the cryptocurrency
technology. For this purpose, the researchers seek to study the features
of cryptocurrency and the experiences from policymakers in other
jurisdictions in dealing with the matter. |
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