Malaysia may legalize cryptos and NFTs soon to expand participation of youth in cryptocurrencies

    In a nutshell

    • Legalizing NFTs, according to Malaysia’s communications ministry, will increase support among younger viewers.
    • Malaysian authorities have previously cracked down on cryptocurrency mining.
    • Crypto-related regulations will be decided by the country’s financial regulators.

    What is Malaysia up to?

    Malaysia appears to be on the verge of becoming the latest country to regulate cryptocurrencies and non-fungible tokens (NFTs). The country’s communications ministry has advocated that NFTs be legalized by the government.

    According to a report by Harian Metro, Malaysia’s deputy communications and multimedia minister, Datuk Zahidi Zainul Abidin, has pushed regulators to legalize some use cases of cryptos and NFTs.

    Legalizing NFTs, according to Zahidi, will increase support from young people, who are increasingly interested in the crypto industry. He also stated that the communications ministry is looking into measures to enhance involvement among the country’s younger inhabitants. He did, however, state that any crypto regulation will be left to the country’s financial regulators, which include the securities regulator and the central bank.

    “We hope the government can strive to legalize this topic so that we can broaden the engagement of young people in cryptocurrency and help them in terms of energy usage and other things,” Zahidi said in parliament.

    What the world sees in the plan

    However, this isn’t the first time Malaysian officials have pondered crypto regulation. Cryptocurrencies aren’t fit for payments, according to the country’s deputy finance minister, who stated earlier this month. Yamani Hafez Musa stated in parliament. “Digital assets like bitcoin and Ethereum are not appropriate as payment instruments.” In general, digital assets are not a good store of wealth or a medium of trade,” Yamani Hafez Musa stated in parliament.

    Within its boundaries, the country has also cracked down on crypto mining. In December 2021, Malaysian police confiscated 1720 Bitcoin mining devices in an operation that was reportedly used to steal electricity. In July of last year, cops used a steamroller to destroy 1000 Bitcoin mining devices.

    “A total of six people have been successfully charged with electricity theft under Section 379 of the Penal Code and have been fined up to RM8,000 and imprisoned for up to eight months,” the authorities said at the time.

    Malaysia isn’t the only country that regulates cryptocurrencies and non-fiat currencies. China has already driven miners out of the country, and India is about to regulate digital assets as well. President Joe Biden of the United States has also asked the country’s authorities to develop rules, as well as a central bank digital currency (CBDC) for the country.

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