Expats applaud Malaysia legalising Bitcoin

The Malaysian government has announced it’s investigating the possibility of legalising Bitcoin bythe end of 2017.

For expats living and working in Malaysia, the government’s intention to legalise the controversial Bitcoin is a relief as, should it be accepted, it will make transferring money to families in the home country far easier. The Malaysian government is taking the opposite stance to China, which has just banned trades of the alternative currency, but is joining a Bitcoin club already hosting Japan and Korea. Both states have regulated and legalised the currency, with Malaysia saying it’s creating policies to regulate its usage in order to ensure it’s not used for fraud, terrorism or money laundering.

According to Muhammad bib Ibrahim, governor of the country’s central bank,Bank Negara Malaysia, (BNM) by the end of the year there will be guidelines on cryptocurrency especially related to terrorism funding and anti-money laundering. The governor stressed the need to provide clear guidelines for those wishing to participate in the sector.

Malaysia is home to a good number of expat professionals working in its oil and gas, electronics, rubber and palm oil sectors, all of whom have problems sending money back home due the state’s strict restrictions on capital outflows. For example, bank transfers to overseas locations face a charge of 20 per cent commission, enough to discourage most expats from sending cash to their families.

Hopes that a regulated, legalised Bitcoin system will develop in order for expats to easily send money out of the country legally are springing up in the expat professional community, with many eager to register with Bitcoin exchanges in order to buy the currency and transfer it back to the home country.
Malaysia will join a good number of Asian countries who’ve embraced the new currency, including Vietnam and the Philippines as well as Japan and South Korea. These countries have all evolved into well-regulated, established Bitcoin markets.

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