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January 20, 2018

Proton, which is one of the most popular auto companies, has suspended one of its dealerships in Seri Kembangan, Malaysia for accepting payment in Bitcoins.

It seems Proton had never agreed with Anjur Kayangan Auto before it started accepting payments in Bitcoins with the former saying they do not recognize cryptocurrencies as a payment medium. It has suspended the company pending further investigations.

Proton said in an official statement,

“While we encourage innovative ways to increase sales, promotional activities must adhere to its guidelines and be endorses by the major shareholder of the car manufacturer. For us to pick up our sales numbers, we shall be taking further steps for more attractive consumer campaigns. And also improvement of product and service quality”.

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But the dealership had recorded an increase in a number of the prospective customer after starting to accept Bitcoin and Ethereum payment. The number of inquiries increased after the dealership put up a banner telling people they could pay in cryptocurrencies.

Sdn Bhd, told theSun,

“Before this, business was not doing too well. I needed a way to attract more customers. And I didn’t want to offer gifts or discounts as it will jeopardize the market. Bitcoin is not illegal, and this is just a payment method we offer our customers. The sum of either a down payment or total amount will be transferred to my personal Bitcoin account. Once the payment is in, a receipt will be issued. To Proton I will forward the amount of cash”.

The company was suffering from a sales fall and was fierce competition and was looking for more innovative ways to advertise the business. It shows the company would have benefited.

Proton’s decision also goes well with the present climate in Malaysia related to cryptocurrencies. The country does not recognize virtual currencies as a legal form of payment. However, it is important to stress that Malaysia has not announced any plans to ban cryptocurrencies.

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