By DayakDaily Team
KUCHING, Feb 19: Bandar Kuching MP Dr Kelvin Yii has proposed positioning Sarawak as a regional cryptocurrency and blockchain hub, citing the region’s vast renewable energy resources, strategic location, and policy flexibility as key advantages.
During his Royal Decree debate in Parliament yesterday (Feb 18), Dr Yii highlighted Sarawak’s abundant hydroelectric power and affordable electricity tariff as major draws for cryptocurrency mining operations.
“Regions like Iceland and Canada have successfully attracted crypto miners due to their affordable and renewable energy. Sarawak has the potential to do the same in a sustainable manner,” he said in a statement.
He also pointed out Sarawak’s proximity to major Asian markets such as Singapore, Indonesia, and China, making it an ideal base for cross-border blockchain activities.
“With a certain level of policy autonomy, Sarawak can introduce crypto-friendly incentives that align with the Sarawak Digital Economy Strategy 2030, which promotes blockchain and digital finance adoption,” he said.
Citing Switzerland’s Crypto Valley in Zug as a model, Dr Yii suggested that with the right regulatory environment and tax incentives, Sarawak could become a global hub for blockchain innovation.
“This will require close cooperation between federal and Sarawak ministries to ensure effective implementation, benefiting not just Sarawak but Malaysia as a whole,” he stressed.
Dr Yii outlined macro-policy recommendations to strengthen cryptocurrency regulations, encourage innovation, and drive economic growth for the benefit of the people and country as a whole.
He emphasised that Sarawak’s push into the digital asset space could create high-value jobs, boost digital infrastructure investment, and attract international investors.
“Sarawak has unique advantages that position it as a potential crypto hub in the region. With the right regulatory framework and incentives, we could unlock new economic opportunities for the people while ensuring a secure and well-regulated environment for digital assets,” he elaborated.
Yii proposed several measures to modernise Malaysia’s cryptocurrency policies, including the development of a Central Bank Digital Currency (CBDC), highlighting that a government-backed digital currency is secure and would enhance payment efficiency and financial inclusion.
He also called for an expanded regulatory scope to cover emerging areas such as decentralised finance (DeFi), non-fungible tokens (NFTs), and stablecoins.
“A comprehensive regulatory framework will not only foster innovation but also reduce risks in new crypto sectors,” he said.
To strengthen consumer protection, Yii suggested implementing stricter reserve requirements, introducing insurance schemes for crypto assets, and establishing a dispute resolution mechanism to safeguard investors against fraud, scams, and exchange insolvencies.
He noted that currently, cryptocurrency regulations in Malaysia fall under the jurisdiction of the Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM), with digital currencies and tokens recognised as securities under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019. — DayakDaily
