The fate of cryptocurrency trading in Malaysia now wearily rests on the shoulders of its citizens, according to a recent report.

Malaysia’s central bank, Bank Negara, is expected to outline its stance on bitcoin in the near future with the publication of a cryptocurrency “concept paper”.

But ahead of drafting the crucial document, Bank Negara governor Muhammad Ibrahim is said to have confirmed he will neither officially denounce nor recognise the token.

Mr Ibrahim said: “Basically, we will let the cryptocurrency promoters including bitcoin, Ethereum and Ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too.

"By doing so, the public can decide on its own if they want to invest in cryptocurrencies.’’

The news comes off the back of Finance Minister II Johari Abdul Ghani saying his Government would not be banning cryptocurrencies.

The Minister was concerned such a move would only stifle “creativity and innovation in the financial sector”.

Malaysia's second Finance Minister said earlier in January banning cryptocurrencies would would damage the country’s growing fintech sector.

GETTY

GETTY

He said: “It is not the intention of the authorities to ban or put a stop on any innovation that is perceived to be beneficial to the public.”

The minster went on to underlined that an innovative fintech sector was essential to a diversified and productive Malay economy.

But he did concede “there is a need for proper regulation and supervision to ensure any risk associated with such schemes are effectively contained”.

Mr Johari agreed that in order for authorities to successfully draft finance policies and regulate cryptocurrencies, officials first need to understand what they are dealing with.

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He added: “This is particularly relevant to recent innovation like bitcoin, which remains unregulated globally and not battle-tested against shocks, unlike more conventional mediums of exchange.”

Bitcoin is trading at $10,051.33 as of 4.45pm on Thursday, February 22 after it peaked over $11,000 on Wednesday.

The cryptocurrency is up around 85 percent on the lows experienced on February 6.