Customer ID Now Required for Crypto Exchange Purchases in Malaysia

Malaysia's central bank is now requiring domestic crypto exchanges to comply with anti-money laundering and know-your-customer mandates.

AccessTimeIconFeb 28, 2018 at 3:11 a.m. UTC
Updated Aug 18, 2021 at 8:20 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

New policies for cryptocurrency exchanges developed by Malaysia's central bank have gone into effect.

Bank Negara Malaysia announced Tuesday that its "Anti-Money Laundering and Counter Financing of Terrorism Policy for Digital Currencies" is now the law of the land. As outlined in the published policy documentation, the rules will apply to all activities performed by cryptocurrency exchanges that offer both fiat-to-crypto and crypto-to-crypto trading services.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • The move follows months of public consultation on the issue. In December, officials from the central bank published draft rules which were then opened up for input to industry stakeholders. Officials began speaking publicly about the framework as far back as November, as reported at the time.

    At its heart, the policy requires that exchanges be more diligent about checking and collecting information about the customers who are using their trading platforms, according to the text released Tuesday.

    "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 customer and when the reporting institutions have any suspicion of money laundering or terrorism financing," the policy document states.

    Specific pieces of data required include the customer's full name, their address and date of birth, as well as information about the purpose of their transactions.

    Still, the central bank stressed that Tuesday's release doesn't represent any kind of endorsement from them – nor does it mean that officials are moving to consider cryptocurrencies a form of legal tender in Malaysia.

    "Members of the public are advised to carefully evaluate the risks associated with dealings in digital currencies," the central bank said.

    Central Bank of Malaysia image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.