The Malaysian Ministry of Communications and Multimedia (KKMM) is reported to be supporting the introduction of cryptocurrencies, and the Deputy Minister is asking the government to legalize cryptocurrencies.

Deputy Communications and Multimedia Minister Datuk Zahidi Zainul Abidin called on Malaysian regulators to legalize certain uses of cryptocurrencies and non-fungible tokens, local news agency Haryan Metro reported on Monday.

Zahedi noted that such measures will greatly support the youth as the cryptocurrency industry becomes more and more popular among the younger generation. He also said that KKMM is looking into ways to increase youth participation in the industry.

The Deputy Minister noted that the decision to regulate cryptocurrencies rests with Malaysia’s financial regulators, including the Central Bank and the Malaysian Securities Commission.

However, the ministry is ready to address this issue because the cryptocurrency industry is “a business and economic program for the future, especially for young people now,” according to Zahedi, adding:

“I hope the government will try to legitimize this issue so that we can increase youth participation in crypto, help them with energy consumption and so on.”
According to some reports, Zahedi proposed not only to legalize certain operations with cryptocurrency in Malaysia, but also to use cryptocurrency as legal tender.

KKMM officials did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.

Some reports also indicate that Honduras is another country preparing to use bitcoin (BTC) as a legal currency, following in the footsteps of El Salvador, which introduced its own bitcoin law in September 2021. “We must not let El Salvador be the only country. avoid dollar dominance,” said Honduran President Xiomara Castro. .

In early March, Malaysian Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz reiterated that payments in cryptocurrencies such as Bitcoin and Ether (ETH) are illegal in the country because cryptocurrencies do not meet the universal characteristics of money.

Related: Binance returns to Malaysia with a strategic stake in a regulated digital exchange

“In general, digital assets are not a good asset and medium of exchange. This is because digital assets are subject to volatile price fluctuations due to speculative investment, the risk of theft due to cyber threats, and lack of scalability,” he said.

The minister added that Bank Negara Malaysia is working on the possible introduction of a central bank digital currency (CBDC) and developments related to blockchain technology in response to the growing trend in the digital asset industry.

Source: CoinTelegraph