Malaysia eyes blockchain innovation, taking notes from the UAE
Malaysia seems to be taking inspiration from the UAE’s blockchain success, signalling its intent to join the digital finance revolution.
Prime Minister Anwar Ibrahim recently returned from a three-day visit to Abu Dhabi with a clear message: Malaysia isn’t sitting this one out. Following discussions with Binance co-founder Changpeng “CZ” Zhao and Abu Dhabi officials, Anwar expressed a strong interest in shaping policies around cryptocurrency and blockchain technology to keep Malaysia competitive in this fast-evolving space.
Speaking to Malaysian media, Anwar shared insights from his trip, which focused on topics like digital transformation, artificial intelligence, and the future of data centres. He emphasised that Malaysia needs to adapt quickly to meet these emerging demands.
“We have talked about digital transformation, data centres and artificial intelligence. We now face demands which require us to think about making significant changes,” Anwar said. “I had lengthy discussions with the Abu Dhabi leadership and Changpeng Zhao, co-founder of the world’s largest cryptocurrency platform Binance. I proposed several months ago how our agencies, including security, treasury and Bank Negara study how Malaysia can explore this so we aren’t left behind. Ensuring that is regulated could safeguard the people’s interests and prevent leakages.”
The Prime Minister plans to consult his Cabinet and has already tasked major agencies like the Treasury and Securities Commission to examine the details. He’s also working on a proposal to outline the regulatory frameworks needed to guide Malaysia’s entry into the cryptocurrency space.
Anwar acknowledged that Malaysia wouldn’t be starting from scratch. Instead, the country will look to others – like Binance and the UAE – for guidance. “We need to discuss this in detail, leave behind the old business model and give meaning to this digital finance policy,” he said.
He pointed to the UAE as a prime example of success in this field. “Their leaders are eager to collaborate with us on this. We need to leave behind old business models and give real meaning to digital finance policy,” he explained. While Malaysia has discussed fintech at length in the past, Anwar said it’s time to move beyond just talking. “We should not sit idly by and wait and later be forced to do so after others have done it already,” he said.
Anwar stressed the importance of regulation in safeguarding public interests while preventing financial losses. Comparing blockchain innovation to the transformative power of AI, he warned against complacency. “The is an evolution which happens quickly and requires us to be equally fast. We feel that Malaysia should not be left behind while mired in an old financial system.”
The Prime Minister didn’t shy away from the challenges of embracing new technologies. “As with all new ideas raised, there will be some concerns. We have to train our personnel, develop competency, and get the players to participate,” he said. He also highlighted Malaysia’s strong ties with the UAE, suggesting that collaboration would be key to ensuring Malaysia’s transition goes smoothly. “We told them that we would move on this on the condition that we work as partners to ensure that things are on track.”
To move things forward, Anwar plans to draft a policy paper for the cabinet’s approval, signalling a sense of urgency in his approach.
Malaysia’s proactive stance aligns with broader regional trends, as countries like Singapore and Thailand are also keen to establish themselves as cryptocurrency hubs.
(Image by Pixabay)
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