The regulation of cryptocurrencies proves to be a bigger challenge than anticipated. More specifically, very few countries have active guidelines regarding this new form of money. While no one can prohibit people from using Bitcoin or tell them how to do so, regulators continue to attempt such drastic measures regardless. Bank Negara Malaysia is still on the fence about cryptocurrencies themselves. Banning them is still an option, although it won’t affect the markets whatsoever.
Even in 2017, most regulators and policymakers don’t understand how cryptocurrency works. Banning Bitcoin and altcoins is not possible under any circumstance. Companies can be prohibited from dealing with cryptocurrency and banks may close customer accounts. There is still the option of using cash through P2P marketplaces or decentralized exchange models. One cannot ban what can’t be controlled, not now or ever. Bank Negara Malaysia will come to that realization soon enough, regardless of their decision.
Bank Negara Malaysia Only has one Option
After all, if Bank Negara Malaysia wanted to ban Bitcoin, they could have done so already. It doesn’t require much negotiation or regulation to do exactly that. However, they are not taking this drastic course of action right away. A big surprise to some people, but it is not as easy to get rid of cryptocurrencies these days. The Star notes how China has also banned cryptocurrencies, which is inaccurate information. The Chinese government prohibits ICOs and has temporarily suspended CNY-to-cryptocurrency trading. There is no “ban on cryptocurrencies’ whatsoever.
It is evident coming up with guidelines is a difficult venture. All governments can do is make cryptocurrency companies adhere to specific guidelines. Even so, consumers can bypass these centralized organizations if they want to. Bank Negara Malaysia will have to acknowledge a decentralized system can’t be regulated effectively. It is doubtful they will acknowledge this publicly, but that is the ultimate truth.
For the time being, cryptocurrency regulation in Malaysia remains a topic of debate. Things will become clearer by the end of the year. It is of the utmost importance to officially recognize this new form of money rather than stifling innovation. Cryptocurrencies are here to stay and they are superior to bank-issued currency in every way. Delaying the inevitable serves no real purpose whatsoever.