NFTs are revolutionizing the digital space. The Ministry of Communication and Multimedia (KKMM) is purportedly pushing for general adoption of digital assets, with the deputy minister now calling on the Malaysian government to establish a legal framework for both crypto and non-fungible tokens (NFTs).
According to a Harian Metro report, a local news agency platform published on March 21, Datuk Zahidi Zainul Abidin, the deputy communication and multimedia minister, has called Malaysian regulators to legalize a few uses cases of digital assets and non-fungible tokens in the country.
More people appear to be embracing NFTs and cryptos with the latest case being the role that they are playing in helping rebuild Ukraine. Other countries are also warming up to the nascent technology that is believed to be an investment vehicle to help investors protect themselves against hyperinflation.
The top government official in Malaysia insisted that crypto adoption in the country will significantly support young people, arguing that digital assets have increasingly grown popular among the younger generation. In that context, Zahidi revealed that his ministry has already started exploring ways to increase the participation of young people in the crypto space.
The deputy minister noted that the fate of digital assets in the country currently lies on Malaysia’s financial regulators, including the monetary authority (Central bank) and the Securities Commission of Malaysia.
Nonetheless, Zahidi clarified that the ministry is willing to bring this issue up because the crypto industry is the “business and financial program of the future for young people, adding:
“We hope the government can try to legalize this matter so that we can expand the participation of young people in cryptocurrencies and help them in terms of energy consumption.”
Zahidi Proposed The Legalization Of Cryptos And NFTs In Malaysia
According to reliable sources from the ministry, Zahidi has not just proposed the legalization of several cryptocurrencies and NFTs but instead the adoption of digital assets as legal tender in the country. However, the Ministry of Communication has not publicly affirmed these claims.
Comms Ministry in Malaysia proposes adopting cryptocurrency as legal tender "to help the younger generation who are active users of the currency, especially on non-fungible token (NFT) trading platforms"https://t.co/m4vXcsfMRr
— Zhu Su 🔺🌕 (@zhusu) March 21, 2022
Elsewhere, some reports suggest that Honduras is reportedly preparing to adopt Bitcoin as legal tender, following in the footprints of El Salvador, which legislated Bitcoin Law in September 2021. In a recent short interview, Honduran President Xiomara Castro hinted at Bitcoin adoption, stating:
“We must not allow El Salvador to be the only country escaping dollar hegemony.”
Zahidi’s bullish sentiment appears the same month Malaysia’s finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz reiterated that digital assets like Bitcoin and Ethereum were illegal. Earlier this month, Datuk said cryptos did not meet any universal characteristic of value, adding:
“In general, digital assets are not a good store of value and a medium of exchange. This is due to the fact that digital assets are vulnerable to volatile price fluctuations due to speculative investments, the risk of theft due to cyber threats, and lack of scalability.”
At the time, the minister ridiculed the crypto assets revealing that Bank Negara Malaysia was exploring possible central bank digital currency (CBDC) and more blockchain-related developments to respond to the growing trend in the digital asset industry.
