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Volume 22 No. 3, December 2023


Article History:
Received: 21 August 2023
Accepted: 27 August 2023
Available online: 01 December 2023


Customer Protection and Money Laundering in the Era of Digital Currencies: Are Malaysian Regulations Enough to Combat?

Norazida Mohamed1, Tan Khee En2, Nasir Sultan3, Akbar Sattar2 and Hafizah Latiff4

1Accounting Research Institute, Universiti Teknologi MARA, Selangor, Malaysia
2Institute of Crime and Criminology, Help University, Malaysia
3Department of Management Sciences, University of Gujrat, Punjab, Pakistan
4Department of Built Environment Studies and Technology, Universiti Teknologi MARA, Perak, Malaysia


The study aimed to assess the robustness of Malaysia’s current digital currency regime by critically examining the various pieces of legislation and gathering first-hand information from stakeholders. The study used a qualitative approach to accomplish the research objectives. Semi-structured interviews with regulators, legal councils and investors were conducted to gain in-depth and practical knowledge concerning the connection among digital currencies, money laundering and customer protection. According to the study, Malaysia has positive intentions towards digital currencies concerning protection through robust legislation. However, current practices and laws enacted by the government and regulators are contradictory. It has resulted in confusion among the public concerning adopting or rejecting such currencies. Further, this confusion provided opportunities for scammers and caused the trapping of innocent investors by scammers. These loopholes and contradictions among different legislations offer a favourable environment for criminals, especially money launderers, to exploit the Malaysian digital currencies regime. Therefore, to address this situation and protect customers, authorities should clarify the roles of various regulators and educate the public about the dangers of using unauthorised digital currency platforms.

Keywords: Digital Currencies, Money Laundering, Regulations, Customer protection
Corresponding Author: Nasir Sultan Department of Management Sciences, Univers ity of Gujrat, Punjab, Pakistan; Email: This email address is being protected from spambots. You need JavaScript enabled to view it. ; Tel: +92 300 4466134


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