Malaysia is now implementing a new policy that will require cryptocurrency traders to fully identify themselves during exchanges. This is the new development following the central bank’s anti-money laundering legislation taking effect last week.
According to the official press release of the Bank Negara Malaysia (BNM), any exchanges pertaining to crypto-to-fiat, as well as crypto-to-crypto trading must “identify the customer and verify that customer’s identity.”
Back in November 2017, BNM Governor Tan Sri Muhammad bin Ibrahim had stressed on the importance of having control over these transactions so as to prevent and control potential criminal activities using cryptocurrencies. “The advent of digital currencies as some have forecast will mark the beginning of a new era in the financial sector. As authorities, we cannot be oblivious to these developments.”
To verify one’s identity, the customer must be able to provide a government-issued ID. “In conducting CDD (“customer due diligence”) on an individual customer and beneficial owner, the reporting institution is required to obtain at least the following information: (a) full name; (b) National Registration Identity Card (NRIC) number or passport number or reference number of any other official documents bearing the photograph of the customer or beneficial owner; (c) residential or mailing address; (d) date of birth; (e) nationality; and (f) purpose of transaction.”