Cryptocurrency Exchange In Malaysia

Bitcoin peaked around USD20,000 in December 2017 then subsequently hit the bottom around USD3,000 in December 2018.  It managed to climb back to USD12,500 in July 2019 before heading south again to settle at around USD7,700 at the end of November 2019. 

Meanwhile, the cryptocurrency exchange platform development is also similar to the volatile price trend of Bitcoin.   There were 11 cryptocurrency exchange platforms in July 2017 and the number of platforms mushroomed to 56 at the end of 2018.

However, starting from 15 January 2019, Securities Commission Malaysia (SC) announced that all cryptocurrency exchange platforms in Malaysia will be regulated under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.  Since then, all the 56 platforms were ordered to cease operations by June 2019 except three operators who were conditionally approved by SC as Recognized Market Operators (RMOs) to establish and operate digital asset exchanges in Malaysia.  During the transition period, these RMOs are not allowed to accept new accounts until they complete further regulatory requirements imposed by the SC.  These three operators are:

Luno Malaysia Sdn. Bhd.

SINEGY Technologies (M) Sdn. Bhd.

Tokenize Technology (M) Sdn. Bhd.

In October 2019, Luno obtained full approval by SC to operate as a Recognised Market Operator (Digital Asset Exchange). This makes Luno the first cryptocurrency exchange in the country to receive the approval and they are able to offer Malaysians a platform to buy, sell and store cryptocurrencies such as Bitcoin and Ethereum. The other two RMOs may secure their licenses soon.

The future of cryptocurrency remains elusive due to regulatory “interference” and prospect of major players like Libra entering the market. For the individual, being circumspect is best going forward.

Reference:

List of Registered Digital Asset Exchanges, www.sc.com.my