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Introduction

Financial technology, or mainly known as Fintech has been a booming industry ever since the strike of Covid-19 when contactless transactions were the only means of dealing. It has become more convenient for every one of every age as everything is mostly one tap away. However, with how simple Fintech has become it can very easily get out of hand without proper supervision. Hence come into play the regulations governing financial technology. Different countries regulate on different playbooks. 

This seven part series will highlight Fintech Regulations in several countries within Asia Pacific, namely:

  1. Malaysia;
  2. Philippines;
  3. Taiwan;
  4. Vietnam;
  5. Singapore;
  6. Thailand; and
  7. Korea.

Series: Malaysia

Malaysia

Fintech in Malaysia remains a niche area even though the High Court has previously ruled in Robert Ong Thien Cheng v Luno Pte Ltd & Anor [2020] 3 AMR 143 that cryptocurrencies can constitute ‘things’ pursuant to s 73 of the Contracts Act 1950 and recognised that there is indeed value attached to cryptocurrencies, stating that that the Contracts Act 1950, having been drafted seven decades ago, ought to be construed to reflect the evolving cadence of modern technology and commerce. However, there have been no reported Malaysian cases on whether crypto assets can constitute a thing in action.

The main regulators for Fintech in Malaysia are Bank Negara Malaysia and Securities Commission Malaysia. It is undeniable that Fintech in Malaysia is evolving, below are the Acts which correspond with the respective areas.

Fintech

  • Financial Service Act 2013
    • the FSA sets out the regulatory framework for, among others, the conventional business of banking, investment banking, insurance, operating a payment system and issuance of payment instruments
  • Islamic Financial Service Act 2013
    • the IFSA sets out the regulatory framework for, among others, the Islamic business of banking and takaful operators. 

Money changing and remittance businesses

  • Money Services Business Act 2011

Stockbroking, financial corporate and asset/fund management

  • Capital Markets and Services Act 2007

E-Money

  • Financial Services (Designated Payment Instruments) Order 2013 (FSDPIO)

Other Related Acts 

  • Anti-Money Laundering And Anti-Terrorism Financing Act 2001
  • Malaysian Anti-Corruption Commission Act 2009
  • Personal Data Protection Act 2010
  • Personal Data Protection (Class of Data Users) Order 2013
  • Personal Data Protection (Registration of Data Users) Regulations 2013

Conclusion

In conclusion, Fintech in Malaysia continues to evolve. It is evidenced by the availability of Apple Pay for merchants, SLoan provided by Shopee, SecureTAC/Secure2u approval by CIMB and Maybank and the ASNB Unit Trusts through Touch ‘n Go eWallet.

WRITTEN BY

Richard Wee Chambers
For further information, please contact:

Richard Wee – Richard Wee Chambers, Richard Wee Chambers
justright@richardweechambers.com

Richard graduated with a Bachelor of Laws (Hons) from the University of London in 1996, completed the Certificate in Legal Practice in 1998 and was admitted as an Advocate and Solicitor of the High Court of Malaya in 1999.

Believing in professional development, Richard continues to acquire new skills and knowledge. He holds a certificate in Strategic Conflict Management for Professionals, awarded by the Singapore Mediation Centre (2011), a certificate of attendance for the Asian Domain Name Dispute Resolution Centre workshop (2014) awarded by the Kuala Lumpur Regional Centre for Arbitration (KLRCA) (now known as the Asian International Arbitration Centre (AIAC)) and a certificate from the Southeast Asia Regional Anti-Doping Organization (SEARADO) (2018) for Result Management for Anti-Doping.

In 2016, Richard obtained the Certificate of Sports Arbitration from AIAC, a qualification which is a preparatory step towards appointment as a Sports Arbitrator.

In 2019, Taylor’s University appointed Richard as a member of the Legal Profession Advisory Panel, which he continues to serve to date.

In 2019, the Society of Inns of Courts of Malaysia admitted Richard as a member.

In 2019, FIFA and Football Association of Malaysia appointed Richard to the Appeals Committee of the National Disputes Resolution Chambers (NDRC). Richard continues to be a member of NDRC in 2021 and 2022.

In 2020, the Ministry of Youth and Sports appointed Richard to the advisory Panel of Experts.

In 2020, the National Sports Institute appointed Richard as a committee member of the Sports Technology Research and Development Funding Committee.

In 2020, the Malaysia Digital Economy Corporation (MDEC) appointed Richard Wee Chambers as the regulatory partner of the Fintech Booster Programme, a capacity-building platform for fintech start-ups and companies.

In 2021, the Ministry of Science, Technology and Innovation (MOSTI) appointed Richard as a member of the Panel of Experts of the Research and Development Fund for Technology.

In 2021, Richard was admitted to the Association of Anti-Bribery Management System Practitioners of Malaysia.

In 2021, the Union Cycliste Internaationale (UCI) appointed Richard as a member of the Disciplinary Commission and the UCI Arbitral Board, respectively.

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