Malaysian government explores policies to bring regulation to digital assets and blockchain technology

The Malaysian Prime Minister, Datuk Seri Anwar Ibrahim, recently announced that the country is exploring policies to help it recognize digital assets and blockchain technology use. The Prime Minister spoke after a three-day visit to Abu Dhabi, where he discussed the best ways to implement the policies with the Abu Dhabi government and Binance’s co-founder, Changpeng Zhao.

Ibrahim mentioned that the discussions touched on artificial intelligence, digital transformation, and data centers in the country. The prime minister explained that the steps to creating digital assets and blockchain tech policies are the next steps in enacting technological development. 

Ibrahim also believes that the policies will help the Malaysian government compete with other countries that are adopting emerging technologies. In his opinion, it will be crucial for the government to join the global trends early, including in AI, instead of “sitting idly and later being forced to do so after others have done it already.”

The Malaysian Prime Minister further confirmed his encouragement to different government entities to begin exploring digital transformation. Ibrahim revealed that he has been speaking to the security department, Bank Negara, and the Malaysian Treasury to find favorable options the country can employ to explore digital assets and blockchain. 

Ibrahim is also expected to begin discussions with the Malaysian cabinet to begin formulating policy proposals. The prime minister confirmed that he is already working on a proposal that will be presented to the cabinet for endorsement “as soon as possible.”

Malaysian PM believes digital transformation will fuel financial growth

The Malaysian prime minister explained that the recent steps toward blockchain and digital asset exploration will significantly impact financial growth and economic freedom in the country.

Ibrahim positioned the United Arab Emirates as a role model in digital transformation and innovation. The PM further commented that UAE leaders are ready to collaborate with the Malaysian government to drop the country’s old business model and initiate digital finance and fintech innovations. 

Ibrahim highlighted a challenge he expects to face during the exploration of digital finance, including public agitation toward the newly proposed system. The PM expressed hope that government officials and the public will be more open, confirming that he wishes to execute the policy as soon as possible. 

The government official also revealed that the digital finance evolution has been rapid, which necessitates Malaysia taking the necessary steps to catch up. Ibrahim promised that the government will take steps to train personnel and get more agencies to participate to deal with expected challenges during the implementation of the new policy.

The PM assured that the UAE will remain a strategic partner during the process to ensure plans remain on track.

Malaysian MP suggests blockchain use to curb corruption

Malaysian MP Syerleena Abdul Rashid commented during a parliamentary session in November that the government should consider incorporating blockchain technology to curb corruption. Rashid, an outspoken advocate for embracing technologies for governance use cases, explained that blockchain will promote transparency in all government operations. 

The MP pointed out the technology’s advantages, including decentralization and immutability, which she believed would reduce fraud, promote accountability, and streamline government processes. Rashid also highlighted how other governments, including Estonia and Georgia, are using the technology to achieve greater transparency in their operations.  

Georgia is among the earliest adopters of blockchain technology, introducing it to the land registry through Bitfury in 2017. The latest data from the Exonum blockchain revealed that over 1.5 million land titles were registered on the blockchain. Georgia’s government explained that the records on the public ledger allowed real-time auditing for transparency.

Estonia employed the KSI blockchain to maintain data integrity from insider threats while maintaining 100% data privacy. The country’s decision came after a large-scale cyber-attack in 2007, necessitating better government record systems to prevent breaches. The Estonian government offers e-Health, e-Identity, and cybersecurity options through the KSI blockchain. 

Rashid also encouraged the government in her statement to adopt the technology to keep up with global trends. The MP highlighted the global blockchain industry’s projected market cap by 2030, which is expected to be over $900 billion.

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