KUALA LUMPUR (Sept 19): Bank Negara Malaysia will issue the necessary guidelines on cryptocurrencies by year end, said governor Tan Sri Muhammad Ibrahim.

Muhammad said the central bank seeks to provide "clear guidelines" for those seeking to participate in the digital currency.

"We hope that by year-end, BNM will be able to come out with some guidelines on cryptocurrency, particularly those related to anti-money laundering and terrorist financing," he said when speaking to reporters at the sidelines of the Global Symposium on Development Financial Institutions here.

Some central banks, such as in Russia and China, have been sceptical towards cryptocurrencies amid a boom of different forms of the digital currency in recent times, which includes better-known names like Bitcoin or Ethereum.

On Sept 4, China banned initial coin offerings (ICO), a cryptocurrency-based investment scheme that uses a term closely resembling initial public offering (IPO).

That same week, Securities Commission Malaysia issued a statement to remind the public of the investment risks in cryptocurrency-based investments.