FinTech in Malaysia is Improving Due to Friendly Regulations
Malaysia has taken a user-friendly approach to adapt to financial regulations as it is working towards digitizing the economy. Due to this, it has become a fintech hub in Asia, especially in the Islamic fintech.
The two financial regulators of Malaysia, Bank Negara Malaysia (BNM) and Securities Commission Malaysia have worked to come up with a conducive regulatory environment.
Malaysia Digital Economy Corporation (MDEC) has teamed up with these regulators to facilitate the startups related to fintech. This will help to boost the fintech ecosystem by bringing in more investors. This can also lead Malaysia to be the center of the digital ASEAN.
Regulations in regards to fintech can be demanding and can lead even a promising business to the sidelines. More friendly regulations can prove to be a helping hand that can lead them through international and domestic regulations and that is the approach Malaysia took with their regulation policies.
The regulators are also helping the fintech service providers with international regulations like anti-money laundering and know your customer. Chin Wei Min, Executive Director, Digital Strategy and Innovation of SC, recently at the SCXSC 2020 said,
“All our fintech operators, whether equity crowdfunding (ECF) platforms or P2P have to do e-KYC, this applies equally to all operators,”
Privacy protocols of data and the importance of compliance with the European Union’s General Data Protection Regulation (GDPR) are highlighted.
“For this, Malaysia is thinking of implementing some of those principles through the Personal Data Protection Department . . . . Fintech players can knock on the SC’s door and are welcome to have a conversation with us,” said Chin.
The regulators are consistently assisting the companies with their regulations and improving financial inclusion.