Cryptocurrency exchanges in Malaysia must now fully identify traders after new central bank anti-money laundering legislation came into effect Tuesday, Feb. 27, according to the banks’ official website.
A copy of the legislation and official press release from the Bank Negara Malaysia (BNM) states that any exchanges offering crypto-to-fiat, fiat-to-crypto and even crypto-to-crypto trading must “identify the customer and verify that customer’s identity.”
“The policy aims to ensure that effective measures are in place against money laundering and terrorism financing risks associated with the use of digital currencies and to increase the transparency of digital currency activities in Malaysia,” the bank said.
The bank reminded the public that digital currencies are not legal tender in Malaysia and advised to carefully evaluate the risks associated with dealings in cryptocurrencies.
“Reporting institutions are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with the customer and when the reporting institutions have any suspicion of money laundering or terrorist financing,” the regulator said.
The move follows various months of public consultation about the issue. In November last year central bank governor said Malaysia would enforce cryptocurrency regulations in 2018.