With 2020 out of the way and the world screaming for a better year in 2021, it is no surprise that cryptocurrency has become bigger than ever. The same situation has been happening in Malaysia as well especially in light of the recent surge and adoption of cryptos occurring around the world.
Faster and more aggressive reception
Prices of cryptocurrency across the world appreciated in 2020 to crazy levels. By early 2021, Bitcoin (BTC) has reached US$50,000. If that does not make anyone sit up and take notice, nothing will as it would mean each BTC was worth RM200,000!! While it might not make sense to start buying BTC, there are hundreds (if not thousands) of other cryptos to choose from and we are only getting started. That said, BTC still commands the biggest share of more than 60% of the total cryptocurrency market. The price continues to appreciate, breaking more records each time it does. Perhaps the most significant year was in 2017 when it reached US$20,000 in December while started that year at only $900.
Regulators taking note
Traders in Malaysia can no longer neglect the influence of cryptocurrencies and many have already been trading on online platforms. This has prompted regulators in Malaysia to start moving into providing a legitimate eco-system for this investment market to thrive. To date, the SC or Securities Commission has enforced the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019. This has opened the doors for 3 DAX (Digital Asset Exchange) platforms to operate.
Luno Malaysia is the largest DAX currently and this is followed by Tokenize Xchange and SINERGY. All the 3 DAX complied with the regulatory requirements and are now allowed to operate for Malaysian traders. In 2020 alone, Luno registered more than 80,000 new users and this trend is expected to grow further heading into 2021.