Bank Negara Malaysia (BNM) has outlined its stance on digital assets in its 2024 annual report, emphasizing support for asset tokenization while reaffirming that cryptocurrencies will not be recognized as legal tender.
In its March 24 research report, the central bank highlighted the growing role of tokenization in enhancing financial system efficiency. BNM acknowledged its potential in enabling programmability, composability, and atomic transactions within the regulated financial sector. However, it maintained a cautious approach to cryptoassets, citing their relatively small footprint in Malaysia’s broader financial landscape.
According to BNM, as of 2024, cryptoassets accounted for less than 1% of total banking system deposits and approximately 0.4% of the market capitalization of securities listed on Bursa Malaysia. Despite this, Malaysia’s crypto market has seen significant growth, with total trading volume surging to $3.06 billion in 2024—marking a 157% increase from $1.19 billion in 2023.
The central bank also highlighted its exploration of digital asset technologies, mainly focusing on tokenized deposits as a potential on-chain settlement asset to complement a wholesale central bank digital currency (CBDC). BNM views tokenized deposits issued by regulated financial institutions as a credible alternative to traditional bank deposits.
While the bank remains open to digital innovations, it made clear that cryptocurrencies will not attain legal tender status. Instead, it will continue monitoring the evolving crypto landscape, which it expects to expand further in 2025.
At the same time, the country witnessed a sharp rise in cryptocurrency investment scams, prompting authorities to issue warnings. Datuk Seri Ramli Mohamed Yoosuf, Director of Bukit Aman’s Commercial Crime Investigation Department, cautioned that fraudsters were increasingly targeting professionals and senior citizens. He specifically urged older investors, particularly those over 60, to be wary of cryptocurrency-related schemes. Malaysia is also experiencing a rise in illegal Bitcoin mining activities, where miners unlawfully access electricity, leading to financial losses for the national power grid.
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