Senior Account Manager at Stone Bridge Ventures, David Myers, reviewed different crypto exchanges operating in Malaysia to find reliable ones investors can approach. Although cryptocurrency is legal to own in Malaysia, it’s not considered legal tender by Bank Negara. The country considers most digital assets as securities, so cryptocurrencies are subject to Malaysia’s securities laws.
These are enforced by the Securities Commission of Malaysia under the 2019 Capital Markets and Services Order 2019. The commission’s revised guidelines came into effect in October 2020, and they apply to all issuers of cryptocurrency looking to raise funds with token offerings. They also apply to all entities that intend to provide services of storing or managing custody of digital assets and people looking to operate an IEO platform.
With these guidelines, companies can raise funds by issuing tokens, but they’ll need the assistance of an approved and registered digital asset exchange to facilitate the IEO. Now this is where it gets tricky – navigating the complex environment surrounding digital assets in Malaysia is no easy task.
But the Securities Commission has registered a few RMOs (Recognized Market Operators) to set up and operate digital asset exchanges in the country. Therefore, entities that have not acquired approval from the Securities Commission are required to cease activities.
Luno Malaysia Sdn. Bhd.
Luno is a recognized market operator for digital assets in Malaysia, recognized by the Securities Commission. It allows the country’s crypto investors to purchase tokens using local currency, MYR. Specifically, it offers Bitcoin, Ethereum, Avalanche, Solana, Cardano, Litecoin, XRP, and Bitcoin Cash, according to a review of its services by Stone Bridge Ventures David Myers.
They have an application that investors can use to instantly purchase cryptocurrencies, and there’s also an option to do so via the online exchange. Users can sign up with the exchange and deposit ringgit into their wallets.
It makes the process accessible by offering bank transfers through most of the common banks. It also offers proof of reserves to its users so that they have peace of mind while purchasing crypto.
MX Global Sdn Bhd
MX Global is also registered with the SC, operating as a verified Digital Asset Exchange Operator. It offers users an MX Wallet, which helps them receive digital assets and keep them safe. Each user also has to go through KYC verification before getting access to their MX wallet. Compared to Luno, it has fewer options, namely Bitcoin, Ethereum, and XRP.
SINEGY DAX Sdn Bhd
This registered digital asset exchange has fewer options than both, only offering Bitcoin and Ethereum for purchase. But it offers a variety of other benefits like cold storage security and a trading fee rebate to investors. Hence, it’s a viable option for investors in need of a secure option to purchase cryptocurrencies.
While there are registered digital asset exchanges operating in Malaysia, Stone Bridge Ventures Senior Account Manager David Myers believes that investors still lack the right environment to foster growth. Therefore, there’s a need for innovative ventures that address people’s concerns and educate them about cryptocurrencies as well.