Bitcoin not legal tender in Brunei, says AMBD

The central bank said cryptocurrency is susceptible to being misused as intermediary for illegal activities as well as highly susceptible to cybersecurity risks.

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The Autoriti Monetari Brunei Darussalam (AMBD) has warned the public to be cautious when dealing with cyptocurrencies.

Virtual currency such as Bitcoin and Ether are not legal tender in Brunei and are not regulated by AMBD, the agency said in a statement.

Cryptocurrencies are privately issued and operate independently from monetary authorities or central banks.

AMBD said cryptocurrency transactions are anonymous and are often traded on platforms of unknown jurisdictions in which the authenticity of its operators are difficult to verify.

The central bank said cryptocurrency is susceptible to being misused as intermediary for illegal activities.

It is also highly susceptible to cybersecurity risks as evidenced by several high profile thefts involving the hacking of organisations in the cryptocurrency network, AMBD said. Criminals have also defrauded consumers by posing as well-known cryptocurrency websites and services.

The Brunei Ministry of Finance.

“The recent rapid escalation in the value of certain cryptocurrencies, including Bitcoin, is driven by high speculation and there is no clear sense of the fundamental value of these cryptocurrencies. The risk of losing its value is high and without any regulatory safeguards, members of the public are not protected under the laws administered by AMBD.”

AMBD said it will continue to closely monitor the development of issues surrounding the digital currency.

For enquiries, contact AMBD at 2388388 or email info@ambd.gov.bn.

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