PETALING JAYA: Blockchain and cryptocurrency integration is expected to increase in Malaysia, according to Wealth Wolves Sdn Bhd.
Executive director Leong Seng Tat foresees greater blockchain integration by the government alongside increased transparency in transactions and higher interest in using cryptocurrency for payments.
“Whether we like it or not, the government has long implemented blockchains. In the nearest future, we will see a major integration taking place although the government does not announce it,” he told SunBiz.
Leong expects increased transparency through governance, transactions and enforcement of legislation. “For instance, government records such as police summons are stored in a system unless settled. Our history is kept in a system unless we pay it off,” he explained.
Businesses will follow suit as they also need to comply with government requirements, he added.
Key challenges for businesses in the next few years, Leong said, will be to lead the transition toward accepting cryptocurrency as a form of payment. “This requires significant adjustments to align with government regulations. Currently, the ringgit is the only legal tender in Malaysia, which poses regulatory challenges for cryptocurrency adoption among merchants.”
Leong stressed that while the shift towards crypto payments may appear straightforward, businesses must navigate various legal, technical and market-related obstacles to successfully implement and integrate blockchain-based transactions.
Bitcoin’s price reached an all-time high above US$109,000 (RM485,700) ahead of the US President Donald Trump’s inauguration last month, driven by anticipated regulatory shifts.
The new US administration has shown support for cryptocurrencies, with the president issuing executive orders aimed at reviewing digital asset regulations and considering the establishment of a national bitcoin reserve.
The US Securities and Exchange Commission, under the new leadership, has softened its approach to crypto regulation. A Crypto Task Force has been established, and restrictive accounting rules have been rescinded, creating a more supportive environment for the crypto industry.
Additionally, crypto exchanges are expanding their presence in the European Union due to the enforcement of the Markets in Crypto-Assets Regulation (MiCA), which provides clear guidelines. Exchangessuch as OKX, Crypto.com and Bitpanda have secured MiCA licences in Malta and Germany, respectively.
