There are many benefits to making use of cryptocurrency but one of the most interesting is the fact that humans can make use of cryptocurrency in a seamless and practically limitless manner. In the past, hundreds of millions of dollars of crypto have been moved will little transaction fee and it does not have any of the restrictions of fiat currency in terms of volume and movement and also because it is decentralized, it does not have any of the restrictions faced by banking services users. This is one of the reasons why cryptocurrency is considered the payment platform of the future.
According to their central bank deputy chief governor, Malaysia intends to impose a $6,000 cash transaction limit from 2020 as a means of discouraging illicit activities but it has been said that this new law will not affect traditional financial institutions and transactions for humanitarian causes.
According to Abdul Rasheed, who is the deputy governor for Bank Negara Malaysia (BNM), this cash transaction limit will apply to all transactions including payments for goods and services. According to Rasheed, the average Malaysian household spends roughly $1,935 a month and the fine for exceeding this cash limit will not be more than three times the amount of money that was transmitted. Rasheed is also a chairman for the National Coordination Committee to Counter Money Laundering.
The reasoning behind the cash transaction limit is allegedly because cash transactions have a certain anonymity to them and this makes them suitable for illicit activities which the government is trying to discourage.
“Cash remains widely exposed to abuse by illegal activities. As such, this measure targets large cash transactions that are at higher risk of being abused. This is also not to hinder legitimate cash payments for goods and services — most of which are for small ticket items,” Rasheed said.
Rasheed made reference to a similar policy that was imposed in Indonesia and stated that he is open to opinions over the matter. It should also be noted that in August 2019, Australia proposed a draft bill that would ban cash transactions above $6,900 which met significant backlash.