Malaysia Approve Cryptocurrency Exchange Amid Covid-19 Crisis
The Central Bank of Malaysia announced yesterday that it was officially approving cryptocurrency exchange. The nation's central bank held a meeting over the weekend to determine the regulatory and technical aspects for bitcoin's first national cryptocurrency exchange, according to a report from CoinFox. Both the central bank and industry representatives agreed that cryptocurrencies and blockchain technology are a "global problem," CoinFox reported, and the approval of a cryptocurrency exchange in the country is a crucial step towards a solution.
During the lockdown, crypto exchange operator Tokenize Malaysia received full approval from the Securities Commission Malaysia to operate a digital asset exchange (DAX), several local media reported Friday. The platform can now accept clients.
If blockchain technology and Bitcoin are capable of significantly disrupting the financial world, then why wouldn't the country of Malaysia also be interested in the subject? Malaysia's state-run central bank recently issued a statement about its plans to encourage the use of cryptocurrency by Bitcoin exchanges and third-party payment processors to fight Corona virus.
The digital asset industry is by far one of the best equipped and it is business as usual for us as the industry is used to working and communicating effectively across time zones and managing teams remotely.
We're working with significant global stakeholders. Global platforms are taking a risk because the global portfolio is too small to have its own IT infrastructure. The question is who will be taking that risk and that has to be aligned with what is actually required to be deployed. The potential of the blockchain has never been clearer to both investors and industry experts. Investors are looking at blockchain based assets to add value to their portfolios and regulatory.
According to the national news agency, out of 23 crypto exchanges that applied, only the aforementioned three received any form of approval. Among them, Luno became the first to meet the regulatory requirements and received full approval.
Luno is based in Europe, whose citizens who work in the financial industry can trade crypto assets freely in the country, and are subject to much less scrutiny. However, the firm is convinced the extra scrutiny has worked out in its favor, and might force the other exchange to be more secretive about its exact operations. Luno has asked for a gradual introduction to Malaysia and it got approved full approval since it will likely need time to get established in the other countries market.