Federal Territories minister Khalid Abdul Samad has made headlines for his plans regarding Harapan Coin.
Initially, it was meant to be a political fundraising tool for Pakatan Harapan’s election campaign. But what has raised questions is a statement on the Harapan Coin website, saying that it might have the potential to become a national cryptocurrency.
Experts say that is a bad idea.
Think tank Center for A Better Tomorrow (Cenbet) released a statement saying it “goes against the principles of good governance.”
“I think it’s a no-go for a political party to start an initial coin offering (ICO) said Cenbet president Datuk Simon Lim Seng Chai. “This move amounts to vote-buying.”
However, cryptocurrencies shouldn’t be shut down altogether, he said.
Instead, there should be regulations in place – and that’s exactly what Finance Minister Lim Guan Eng said will happen by Q1 of 2019.
Watch the full episode on how cryptocurrency works, and how it can be regulated. Newsflash is a weekly explainer series that dissects and discusses current issues. Watch the series here.