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Not only will cryptocurrencies become more widespread in the county, but the move also spreads the use and trade of digital assets across the whole Southeast Asia region. Malaysia follows Singapore and Thailand in the acceptance of cryptocurrency and this will likely pique interest in digital assets in the country.
Three cryptocurrency exchanges have been granted permission to operate in Malaysia by the country’s securities watchdog, the Securities Commission (SC) according to the Malaysian Reserve. Although the permission to operate has been granted on a temporary basis for now, the announcement is viewed as positive for the cryptocurrency industry as the likelihood of permanent and official permission to operate is high. The exchanges that have been allowed to temporarily operate have been given 9 months to comply with the regulator’s requirements for them to be granted permission to fully operate. The three exchanges are Sinergy Technologies, Luno Malaysia and Tokenize Technology.
Interest has already increased among Malaysian investors and the general population
The news about the temporary approval given to the three crypto exchanges has already generated interest in cryptocurrency among the people of Malaysia. According to David Low, Lino’s south east General Manager, they have received many inquiries from investors, with investors asking about when they’ll be able to sign up and deposit their money. Low also added that inquiries have increased thricefold at least.
Sinergy Technologies’ Head of Institutional Sales, John Sidoli, commented that they would be expecting to gain at least 10,000 new investors on their exchange following the approval by the SC. By June 2020, the company expects to have added 30,000 more investors. This is also a reflection of the interest in cryptocurrencies in Malaysia and how the crypto exchanges have made their projections and are prepared to meet the needs of investors and traders in the country. Online crypto trading is sure to gain popularity in the country and over time, the SC may grant approval to more exchanges.
A bit of patience needed
Investors and traders may have to exercise a bit of patience before they are able to experience the full services from the best digital crypto exchanges. The temporary approval granted comes with certain restrictions on the operations of the exchanges. Currently, the exchanges cannot accept deposits and they can only do so after they get full and unrestricted permission from the SC.
The SC has also stated that none of the exchanges are permitted to initiate or market an ICO until they have been granted complete approval. Guidelines regarding this are still being worked on by the regulator and until then, the exchanges cannot engage in any business involving ICOs. The offering of ICOs and their marketing has to pass through the SC first before it can be done. The three exchanges have also only been granted approval to trade in Bitcoin, Ether and Ripple (XRP) at the moment. Any other cryptocurrencies are yet to be approved for trading and this means that there is a limited range on the exchanges for now.
Positive signs for cryptocurrency in South East Asia
There is a lot of positivity towards and for the crypto industry in the South East Asia region. Malaysia’s SC becomes the latest regulatory body in the region to announce their readiness to regulate cryptocurrency. Thailand already announced that the country is working on a framework for cryptocurrency fundraising while Singapore’s tax authority announced that they are working towards removing Goods and Services Tax (GST) on cryptocurrencies. It can be rightly expected that the region will see cryptocurrencies and the use of them expand and become widespread across it.