While retail and institutional brokers have long obeyed the AML rules that deal with money laundering and collect data from their clients, anonymity has been a valuable asset of the cryptocurrency world, until recently.
If before cryptocurrency exchanges accepted new customers without any strict rules, then now Malaysia has introduced new legislative acts that oblige all stock exchanges in the country to collect information about their customers.
“Reporting institutions are required to conduct customer due diligence on all customers and the persons conducting the transaction when the reporting institution establishes business relationship with customer and when the reporting institutions have any suspicion of money laundering or terrorism financing,” is stated in the document with new rules.
The Central Bank explains this restriction of the rules, guided by two main goals: fighting with money laundering and countering the financing of terrorism.
All of the services for the exchange of fiat money for cryptocurrency, as well as companies that provide services exclusively in the cryptocurrency market fall under these rules.