The Brunei Darussalam Central Bank (BDCB) reminded the public to exercise extreme caution prior to dealing with cryptocurrencies and related products, in a statement on Tuesday.

The public is also urged to fully understand the risks associated with cryptocurrencies, and to be wary of rampant cryptocurrency fraud and scams promising high returns on investments often advertised online and through social media.

BDCB reiterated that cryptocurrencies are not legal tender in Brunei Darussalam and are not regulated by BDCB as they operate independently from monetary authorities or central banks.

Nevertheless, the activities surrounding them may be regulated if they constitute any of the activities under BDCB’s pur-view. This may include – but not restricted to – businesses or individuals providing financial services to the public in the form of deposit-taking, loans, remitting funds across the border, foreign exchange services, and the issuance of securities.

BDCB is aware that due to the rapid growth of cryptocurrencies globally, there has been heightened interest from the public.

Hence, BDCB is developing an appropriate legal and regulatory framework for cryptocurrencies and related activities.

-- Courtesy of Borneo Bulletin