How Malaysia And Denmark Interact With Cryptocurrencies

How Malaysia And Denmark Interact With Cryptocurrencies

Cryptocurrencies have drawn the attention of institutions and regulators as well as geeks’. In fact, governments and countries are forced to take actions towards this fast growing industry.

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Cryptocurrencies have drawn the attention of institutions and regulators as well as geeks’. In fact, governments and countries are forced to take actions towards this fast growing industry.

The Central Bank of Malaysia released a statement on cryptocurrency exchanges last week. The authorities are concerned that criminals may benefit from the digital money revolution. More precisely in the words of the report published, the central bank points out at money laundering and terrorists funding as their main concerns.

When the new regulations will take place, everyone who transfers money is going to be obliged to authenticate the identity of the recipients. Apart from that, all transactions shall be monitored and customers encouraged to report any activities that seem suspicious.

Despite that the state understands people exchange and trade with cryptocurrencies, they are not recognized as an official payment method, even more – something of value. The report explicitly states that everyone is responsible for the risks taken. Moreover, those who use virtual money are not protected by the law when disputed resolution arrangements occur. Any feedback on the matter is accepted in written form until 14 January 2018.

On the other side of the globe, Denmark is considering the use of cryptocurrencies as a way of sending aid to foreign countries. Blockchain startups Sustania and Coinify, released a report where they evaluate the possibilities of helping poverty-stricken regions, through virtual money.

Not long ago, the United Nations took the first steps in this direction. Ethereum was used to deliver aid to refugees. However, if Denmark does not abandon this project, it may become the first country in the world, which transfers aid directly to those in need.

The advantages of that kind of funding is that everyone willing to help can send virtual money directly to the institutions collecting them, without the intermediation of third parties. The process takes less time and is more efficient.  The Danish Minister for Development Cooperation, Ulla Tørnæs, states that technologies are going to play major role in the development cooperation.

We hope that Denmark do start such a socially aware initiative, which expectantly will be appreciated and adopted by other countries as well.

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