Expert Urges Global Cooperation to Regulate the Crypto Industry

The most prominent Malaysian exploration in the cryptocurrency sphere, Vincent Fong, asks the government, as well as the interagency, cooperation to form a more effective regulation of the crypto market. Countries such as Singapore and Hong Kong had established superior guidelines on stablecoins, an aspect that Malaysia is missing. The push by Fong occurs when crypto-related investment scam has skyrocketed with more than RM200 million in losses in 4,000 cases in five years. This develops an alarming consideration to have regulation introduced, especially in a situation where Malaysia struggles to curb crypto fraud.

Fong is not alone in her worrying: a U.S. Treasury framework published in 2022 focuses on the importance of global action to regulate crypto. This model requires the collaboration of various agencies to control the bordered aspect of crypto. In the meantime, other countries such as Singapore have recently engaged in crackdown operations against money laundering in the crypto sector, indicating an increasing trend of more transnational oversight activity.

Effective Collaboration Key to Preventing Crypto Fraud

According to the study conducted in the Journal of Financial Crime (2023), collaborative regulation is capable of decreasing crypto fraud using up to 30%. The research paper refutes the notion that crypto industry cannot be regulated. As a matter of fact, to discourage fraud, regulatory cooperation and education are vital factors. The story is being questioned that the anti-regulatory nature of crypto cannot be controlled. The recent emergence of international regulatory initiatives. This was demonstrated by the scenario in Singapore and U.S. crypto becomes a regulated phenomenon with an appropriate framework. Fong suggests that Malaysia should use the same measures to fight the increasing risks to crypto regulations.