While cryptocurrency is legal in Malaysia, it is important to note that the legal status of cryptocurrencies varies by country. Various factors can be attributed to why some governments have chosen to ban or restrict cryptocurrencies. Here are some of the most common reasons:

Regulatory Concerns:

Governments may prohibit or regulate cryptocurrencies due to concerns about money laundering, terrorist financing, or other illegal activities. They may believe that cryptocurrencies’ decentralized and pseudonymous nature can be used for illegal purposes.

Financial Stability:

Some governments are concerned that cryptocurrencies will undermine the stability of their traditional financial systems. They may be concerned that the speculative nature of cryptocurrencies, as well as their potential volatility, will harm their economy or monetary policy.

Control:

Cryptocurrencies operate on decentralized networks, with no central authority. This lack of control may be interpreted as a test of the government’s ability to regulate and monitor financial transactions.

Understanding of Technology:

Governments may not fully comprehend the technology and intricacies underlying cryptocurrencies, leading to caution or skepticism. This misunderstanding may play a role in their decision to ban or restrict them.

Consumer Protection:

Governments may be concerned about cryptocurrencies’ potential risks and lack of consumer protection. They may want to protect their citizens from potential scams, fraud, or Ponzi schemes in the cryptocurrency space.

While some governments have imposed bans or restrictions on cryptocurrencies, others have embraced them, recognizing their value. As mentioned during the live-streaming session, El Salvador has accepted bitcoin as a legal tender, as has Lugano, a city in Switzerland.