In the era of globalization and modern technology development, digital currencies became as norm in many country in the world including Malaysia. The modernization technology is the main driving force for new creation of innovation throughout digital forms of money or cryptocurrency in the financial services industry. As stated by Miraz, Mahadi & Hye, A. K. & Habib, Dr. Md. Mamun. (2019), the currency of the paper is something that is used in the past since now the virtual currency in investment had successfully takes place. The journal also stated that cryptocurrency is “a token created and stored electronically in block chain to control the creation of monetary units and to verify the transactions”.
The transaction of Bitcoin occur approximately 62.5 million between 109 million accounts. The history of Bitcoin exists from 2009, the creator’s name is Satoshi Nakamoto as a hosts a digital currency called as Bitcoin. Nakamoto, S. (2019). According to Acquisti, A., Taylor, C., & Wagman, L. (2016), Bitcoin is defined as “an online communication protocol that facilitates the use of a virtual currency, including electronic payments.” Bitcoin’s is create by an anonymous group of developers and all regulations were designed by engineers with no apparent influence from lawyers or regulators. Instead of transactions on any single server or a set of servers, Bitcoin is built on a transaction log that is distributed across a network of participating computers.
Current news reported by Kevin Helms. (2020, February 28), Malaysia’s finance Minister Lim Guan Eng stated that any kind of Crypto service providers and exchange need to have authorization with Security Commission Malaysia. If any unauthorized digital currency and initial coin offerings operates without Security Commission Malaysia’s approval, there will be punishment or conviction not exceeding 10 years imprisonment and fine not exceeding RM10 million. In the meantime, the central bank, Bank Negara Malaysia has stated that Malaysia still not have legal tender for cryptocurrencies and advised the public to be wary to evaluate the risks when involving with digital currency. Despite there is a mixture of positive and negative sentiment about cryptocurrency news relating to hacking, decentralized block chains, and regulations but most of Malaysians think that Bitcoin is still acceptable for them to use.
However, Bitcoin is lack of security which it leads to high tendency of fraud in the digital platform. As reported by Nurulain Atiqah Zain Azmi, & Aisyah Abdul-Rahman. (2018), the cryptocurrency’s popularity has been surged which contribute too many cryptocurrency issue or abuses such as volatility of Bitcoin price, fraud and possibility of losing money in e-wallet. Besides that, the lack of a standard global regulatory framework in the finance technology (FinTech) innovation which cause Bitcoin be used by irresponsible party for other illegal function. It involve financing crime such as the money laundering, pyramid scheme illegal distribution of financial tokens issuance of securities and illegal trade for weapons and drugs and as well as financing terrorism. Yoon-Chow Yeong, Khairul Shafee Kalid, & Savita K Sugathan. (2019).