KUALA LUMPUR (Dec 15): Bank Negara Malaysia Deputy Governor Abdul Rasheed Ghaffour said cryptocurrencies are not outlawed in Malaysia because a ban will curb innovation and creativity.

Abdul Rasheed said businesses that opt to use cryptocurrencies as a payment method can still do so. He, however, emphasised that cryptocurrency is still not legal tender here.

"Cryptocurrencies are not outlawed in Malaysia, but the public should be aware that its usage has no backing from the public financial institutions.

"We need to strike a balance between [upholding] public interest and integrity of the financial system. A ban would just curb innovation and creativity," he said at a media briefing here today.

Bank Negara organised its media briefing today ahead of a meeting with cryptocurrency exchanges on Monday.

Abdul Rasheed said the cryptocurrency exchanges have indicated that they will attend the meeting. "We will have a briefing with cryptocurrency exchanges on Monday," he said.

Today, he said there is no indicated timeline on when Bank Negara will decide on cryptocurrency regulation policies.

"We need to make informed decisions [on the matter]," he said.