Bank Negara Malaysia issued a firm warning about digital currencies, highlighting a host of risks.
The central bank warned potential investors to carefully consider the risks in dealing in cryptocurrencies, in draft regulations draft regulations. The central bank also said financial institutions are not putting arrangements into place for digital currency businesses.
Malaysia's policymakers highlighted the threat from high volatility in prices, the lack of deep markets and vulnerabilities to cyber-attack which can lead to significant losses.
Bank Negara stressed that in the case of any dispute or losses, digital currency owners would not be protected by existing banking laws. A draft of the guidelines has been issued for public consultation, which Bank Negara makes clear does not represent an endorsement of cryptocurrencies.
