Recently, the KKMM has reversed its stance on cryptocurrency trade and called on the Govt to legalize cryptocurrency. It came as a surprise to everyone considering their negative stance on the cryptocurrency industry until this announcement. Many people still don’t know a lot of things regarding crypto and ask a lot of questions but there are websites where you can get questions such as how does proof of stake work? answered. Back then, they also said that the cryptocurrency industry didn’t match up to the standard and globally recognized features of money. This was part of a push by the people at the top to stunt the growth of cryptocurrency adoption in Malaysia.
Malaysia has recently become a rising crypto nation based on the influx of people willing to do business on nonfungible tokens and other digital opportunities in the community. This partly has to do with the ongoing war between Russia and Ukraine, as it has poised investors to look elsewhere in the Asian market beyond Singapore and Hong Kong. When you consider the fact that Malaysia is somewhat a crypto tax-free country because they don’t see crypto as capital gains nor do they view it as a legal tender, then you can see why crypto investors would want to invest in Malaysia.
It should be noted, however, that the crypto tax exemption rule only applies when these investors aren’t being constant and repetitive in their cryptocurrency adoption and nonfungible token transactions. This means that people who still engage in constant and regular day-to-day transactions in the crypto space will still pay cryptocurrency taxes. When it comes to companies, businesses, or corporations that are engaged in cryptocurrency adoption or trading in digital currencies, it is clearly stated that they will pay taxes on all gains made relative to crypto. The currency in which the profits are made is also irrelevant as a company that deals in crypto but makes their crypto profits in fiat currency will still pay capital gains tax. This is to counter corporations that wish to use this as a loophole to not pay taxes from cryptocurrency trade.
Now, the KKMM wants crypto to be legalized
That leads us to the current situation where, speaking for the KKMM, a Malaysian Communication official deputy beckoned to the people in the state that make restrictions to legalize crypto and not just stop there but legalize NFT too. The finance minister of the nation had previously told people not to engage in crypto payments and exchanges like https://redot.com/ because crypto trading was illegal. The individual talked about the people holding the red tape and making regulations to stop the animosity toward crypto and let the people engage with the cryptocurrency industry to a certain extent. The news stated that he also extended these privileges to the nonfungible tokens as well, calling for the leaders and those placing restrictions to legalize NFT.
This change of tune might have been caused by the new investors willing to participate in crypto exchanges but the deputy minister argued that the state should do it for the young ones because they are the ones who are most involved in the crypto ecosystem. He even added that the KKMM is encouraging the youth to get into cryptocurrency adoption in larger numbers and at a more frequent rate. Thankfully, the younglings know a lot about it and will be the future of crypto in Malaysia, at least based on how he and the KKMM see it.
He went on to elaborate that, ultimately, the choice on whether or not to ease restrictions on cryptocurrency trade in the nation rests in the hands of the regulators themselves as well as other governmental bodies. Regardless of that, the KKMM felt the need to talk about this matter because they see the crypto space as a finance system and business opportunity for the youngsters and their future. The deputy continued by mentioning their faith that the state would legalize crypto in an attempt to broaden the influence of the youth on the cryptographic economy with regard to energy use and other aspects.
Based on a few reports, the deputy minister not only wishes for crypto trade to be legal, but even wants it recognized as a legal tender, but this claim has yet to be confirmed. In their tweet about the new stance on crypto, the KKMM were clear about their desire for cryptocurrency’s legalization as a way to ignite the youth that is interested in cryptographic digital assets, particularly when it came to nonfungible token exchange platforms.
There are more sources implying that Honduras might also be on the same path to accepting Bitcoin, the premier crypto coin, as legal tender. El Salvador has recently been known to be a Bitcoin nation, with the President fully accepting cryptocurrency as the next step in the small country’s evolution. The President has implemented crypto-friendly laws that free them from any fiat constraints and is currently boosting their economy and appealing to crypto investors. In the same vein as El Salvador’s leader, the President of Honduras talked about his nation following El Salvador’s footsteps and being free from the hegemony of the dollar.
The finance minister of Malaysia had said crypto payments were not legal as recently as the beginning of March 2022, and this applied to all cryptocurrencies. He said they were not real money in the sense that they didn’t adopt the natural characteristics of fiat currency. He carried one saying that digital currency is not convenient when it comes to storing and estimating the value of money or serving as a means of exchange. He also mentioned the vulnerability of digital assets when it came to prices and how untrustworthy they could be, which is an understandable point when people are staking their hard-earned money on such an ergodic value system. Add to that the inability to scale some of the coins and malefactors that scam, and a person could see why he warned people off it and why the state made cryptocurrency illegal.
Now, though, the tide is changing. Will Malaysia accept crypto payment and eventually push towards full crypto acceptance? Only time will tell.