Malaysia Bans Telegram While Pitching Web3 Sandbox to Startups

Tue Jun 24 2025
Malaysia blocks Telegram over “public harmony” concerns just days after launching its Digital Asset Innovation Hub. What this means for crypto startups.

🚫 Malaysia Bans Telegram — But Wants Your Startup?

The country just launched a Web3 sandbox. Then it blocked Telegram. Welcome to Malaysia’s innovation contradiction.


🧨 Court vs. Crypto: Telegram Goes Dark in Malaysia

On June 19, 2025, Malaysia’s High Court blocked access to Telegram, following a lawsuit from the Malaysian Communications and Multimedia Commission (MCMC). The reason? Two channels — Edisi Siasat and Edisi Khas — allegedly “threatened public harmony” and undermined trust in state institutions.

Telegram was accused of ignoring takedown requests. So the court didn’t just target the channels — it blocked the entire platform’s content circulation linked to the case.

All this? Just days after Malaysia told the world it was ready to be Asia’s next crypto sandbox.


🧪 Sandbox for Startups — Or Just Window Dressing?

At the Sasana Symposium 2025, Prime Minister Anwar Ibrahim announced Malaysia’s Digital Asset Innovation Hub: a bold sandbox for testing ringgit stablecoins, programmable payments, and decentralized apps — all “free from enforcement.”

Sounds cool, right?

Except… Telegram just got banned.

Telegram is the platform for Web3 builders, crypto trading, token communities, and startup launches. Blocking it over vague “national harmony” concerns sends a brutal message:

We want your innovation — but only if it stays quiet.


🚨 Startups, Read the Fine Print

The Telegram ban drops a red flag right in the middle of Malaysia’s welcome mat for tech founders.

Yes, the regulatory sandbox sounds promising. But political fragility and opaque takedowns are dealbreakers. Telegram’s light-touch moderation clashed with Malaysia’s strict controls on speech — and the result was a court-ordered blackout, not negotiation.

Startups need to ask:

Can you trust a sandbox that can disappear with a judge’s pen?


🌏 The Region Is Watching

Other Southeast Asian players are moving fast and clear:

  • Singapore: Firms must register or shut down by June 30 — no gray zones.
  • Thailand: Embracing blockchain in tourism, banking, and payments.

Malaysia, meanwhile, offers dual messaging: “We love crypto!” and “Block Telegram!”

That kind of regulatory schizophrenia doesn’t just scare off startups — it kills trust.


⚖️ Innovation Under Threat

Malaysia’s Telegram ban isn’t a one-off. It’s a litmus test for its entire digital future.

If the country wants to attract founders, it needs to:

  • ✅ Respect platform neutrality
  • ✅ Offer predictable rules
  • ✅ Separate politics from product

Right now, it’s doing the opposite.


🧾 TL;DR

  • 🚫 Malaysia’s High Court banned Telegram after MCMC complaints
  • 🧪 Just days earlier, the country launched a “Digital Innovation Hub” for crypto startups
  • ⚠️ This contradiction exposes serious political risk behind the innovation pitch
  • 📉 Telegram’s ban could undermine Malaysia’s credibility as a Web3-friendly nation
  • 🧠 Founders should judge Malaysia by what happens in court, not just on stage

Because innovation doesn’t thrive where apps get blocked overnight.

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