Digital Currency has skyrocketed in popularity, drawing off the popularity of BitCoin and now, numerous others. However, the popularity has been crowd based, while governments of countries are reacting differently. Some have or are seeking to regulate digital currencies, while others have gone into direct competition with existing ones.
Bank Negara Malaysia (BNM), while stating that it does not regulate digital currencies, has issued an exposure draft setting out obligations of digital currencies. The draft mainly outlines what digital currencies must adhere to so as to comply with existing Anti-Money Laundering and Anti-Terrorism Finance regulations.
Basically, the central bank’s draft policy sets out the legal obligations, requirements and standards that digital currency exchangers which will be defined under the First Schedule of the AMLA, must carry out as reporting institutions. This includes transparency obligations which are intended to provide relevant information for the public to better understand and evaluate risks associated with the use of digital currencies.
That sounds an awful lot like regulation to us
Despite BNM constantly reminding everyone that digital currencies are not legal tender in Malaysia, we are seeing an increasing number of vendors here posting signs stating BitCoin will be accepted – and that’s just the tip of the market.
Aside from the fact that Digital Currencies are for the most part still very much unregulated, they are also extremely volatile. This simple scares governments like crazy, but has proven extremely popular with new-age investors!
Today, we are seeing dozens of what has been termed as Initial Coin Offerings (ICO), through which new digital currencies are launched as a way of entering the market. In fact, an entire ecosystem, from coin exchanges to cloud mining setups to blockchain infrastructure is being rapidly built from ground up – and nothing government regulators are doing seems to be stopping it.
So for the average Joe in the street, rather than worrying about governments attempting to regulate Digital Currencies for their benefit or to suit strange legislation, shouldn’t the question be if we can earn some cash off the trend instead?
When BitCoin first materialized, it was meant for the tech literate, those who knew about digital currencies and how to obtain them through their own equipment. Today, these Digital Currencies are tradable commodities, and you can invest in them, just like stocks.
Sites like MIDAS and Sun Mining invite investors who place cash with them and earn returns over time, much like investing in futures. These are platforms offer investors a significant opportunity to get in on something that has flooded global markets and is likely here to stay.
Have you bought your BitCoin today?