The Malaysian cryptocurrency market has been buzzing with positive news after the recent acquisition of shares by Kenanga Investments in Tokenize, one of the 3 Digital Asset Exchanges (DAXs). This simply means that the Malaysian community is gaining traction when it comes to cryptos and that would surely be a good thing.
Legitimacy is key
Crypto traders in Malaysia have been investing in this market for quite a while now. This is even before the SC (Securities Commission) started approving DAXs. Now that Malaysians can legally and safely invest through the likes of SINERGY, Luno or Tokenize, there are still a large group of traders who are still using unregulated exchanges. Hence, the call is to have tighter regulations for traders to minimize scams and unscrupulous platforms operating.
Be certain and always check
For nearly 2 years now, the SC has approved DAXs in Malaysia. Since the start of 2021, cryptocurrency prices have hit the roof, especially with their volatility. This has prompted more Malaysians to join this investment platform. The problem is that there are too many digital exchange platforms and to date, only 3 have been approved.
According to observers, there could be as much as half of the total trading volume in Malaysia taking place outside the exchanges that are regulated. This could amount to as much as RM100 million every month. If this is not controlled, it simply means that a large group of investors in the community remain vulnerable and unprotected (by Malaysian law).
What makes this riskier is that no one can tell when these exchanges will ‘disappear’ although it is not likely. The different guidelines and authorities could make it more complicated like the SC and the those operating in Labuan. The SC has been publishing exchanges that are not regulated in Malaysia like eToro and Binance to keep the public informed.