Malaysia’s central bank has issued a statement seeking to warn customers and distance itself from the Coinzer cryptocurrency.
Bank Negara Malaysia’s concern is Coinzer’s use of official logos on their proposed physical token. The statement outlines that Coinzer’s use of the BNM and Jata Negara logo on their prototype token website and whitepaper are unauthorized, and the project is in no way connected with the bank. Alongside this, the bank reminds customers that digital currencies are not legal tender, and urged investors to exercise caution and carefully examine the potential risks.
Since the Bank’s statement, Coinzer has produced their own press release, posted on their website. The statement attempts to clarify that the physical token was only a proposal and that they will now not be going ahead with this idea. They add that they are in fact working closely with Malaysian authorities and that the development of cryptocurrencies is recognized as a positive force by both sides:
“Regulators in many countries especially Malaysia are aware that this new technology and financial innovation will not only enhance productivity of economic activities, but also make financial intermediation more seamless”
According to the website, a new design and a video further explaining the situation are in production.
Coinzer is building on the Ethereum network, focused on maximizing the efficiency of businesses by bringing all manner of systems on to the blockchain. Their whitepaper states that they are trying to become the number one cryptocurrency in Malaysia and attract international investments to the Asian country.
Malaysia itself has taken a passive stance towards cryptocurrencies, with the head of the central bank announcing that the public would decide the technology’s future last month. “It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public,” he told reporters. It marks Malaysia as one of the few countries that has laid out a clear approach to the development of virtual currencies, allowing the public to decide their fate.
Whilst the central bank’s position has been for the most part positive towards crypto, Malaysia’s statutory securities regulator did shut down an ICO in January. CopyCash, a decentralized trading and investing platform, was told to cease and desist by the authority, after it was discovered the platform’s token did not comply with laws regarding securities.
Featured image from Shutterstock.
Last modified: May 20, 2020 8:58 PM UTC