Hard to control cryptocurrencies due to decentralised nature - Eddin Syazlee

KUALA LUMPUR: It is difficult to establish any form of security control for cryptocurrencies such as Bitcoin due to their decentralised nature, said Deputy Minister in the Prime Minister's Department (Economy) Datuk Eddin Syazlee Shith.

He said the government does not have any central site for controlling cryptocurrencies as they are "open".

"Regarding cryptocurrencies, it is very difficult for us to establish a form of control for Bitcoin and such due to their decentralised nature, and we do not have a central control site as they are open and numerous worldwide. This is a new form of investment," he told the Dewan Rakyat today.

He was replying to a supplementary question from Cha Kee Chin (PH-Rasah) on the government's stance regarding security control requirements for cryptocurrencies to ensure members of the public do not fall into scams, which would lead to losses instead of an increase in equity ownership.

Eddin Syazlee said the government, through the Securities Commission, has recognised and classified cryptocurrencies as securities under the law in order to provide guidance to investors so that they understand the risks and types of investments related to cryptocurrencies.

"To devise specific laws is very difficult because specific regulations can't be done due to cryptocurrencies' decentralised nature," he added.

-- BERNAMA