With the increasing adoption of cryptocurrency, nations worldwide are now passing regulations that aim at controlling the way these financial assets work within their jurisdictions.
The latest to join the list of those countries is Malaysia, which recently announced a set of policies that focus on the function of cryptocurrencies within its borders.
While the country’s central bank, Bank Negara Malaysia, confirmed once again that cryptocurrencies are not recognized as legal tender, the regulations were put in place to have more information on the transactions performed through cryptocurrencies.
According to the published guidelines which revolve around Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT), the new policies direct exchanges to impose know your customer (KYC) measures that will eradicate the sense of anonymity that cryptocurrency transactions are known for within the country.
By doing this, the bank aims to regulate the cryptocurrency trading market in an effective manner.
The requirements ask cryptocurrency exchanges to have proper customer information on file, such as their name, full address, and date of birth as well as the verification of that information through their national identity documents.
The exchanges will also be required to monitor transactions performed within their operations and inform authorities if any suspicious activities are noticed.
The move comes after the central bank had published draft rules in December 2017, asking for public opinion on them.