Kuala Lumpur, MALAYSIA – Unlike perhaps any other industry in the world, cryptocurrency businesses seem to buck the trend for fighting regulation by inviting it instead. And in that vein, the cryptocurrency scene in Malaysia is about to get a whole lot more exciting as it takes a leaf out of Japan’s approach by introducing a voluntary registration for cryptocurrency exchanges, a move which will no doubt increase the legitimacy, credibility and likelihood of adoption of cryptocurrencies. On Friday, Malaysia’s central bank, Bank Negara Malaysia published the list of cryptocurrency exchanges in Malaysia that had registered themselves with the financial regulator as a reporting entity. Although the cryptocurrency exchanges are reporting entities, they are not licensed entities by the Malaysian central bank and are forbidden to portray themselves as being so. Nonetheless, cryptocurrency exchanges which have registered with Malaysia’s financial regulator will have regular reporting obligations.
Although the reporting obligations add an added degree of regulatory supervision of cryptocurrency exchanges, investors are wise to note that these do not cover security and it is highly unlikely that Bank Negara Malaysia will intervene in the event that a cryptocurrency exchange is hacked. The main thrust of the initiative will be to prevent money laundering and terrorism financing. The reporting obligations of cryptocurrency exchanges also does not speak to the viability of these firms as business entities or going concerns and as always, investors are strongly advised to do their own due diligence.
The list of the 29 reporting cryptocurrency exchanges include:
- ADD Blockchain
- Arbor Digital Sdn. Bhd.
- Arxchange Sdn. Bhd
- BCMY Pte. Ltd.
- BitX Malaysia Sdn. Bhd.
- Blockchain Developer Sdn. Bhd.
- Blockchain Street Sdn. Bhd.
- BXM Sdn Bhd
- B4U EXC (M) Sdn. Bhd.
- Belfrics Malaysia Sdn. Bhd.
- Chako Global Sdn Bhd
- Everus Technologies Sdn. Bhd.
- Metro Hexagon Sdn. Bhd.
- NIEXX Sdn Bhd.
- Numex Sdn. Bhd.
- OpenBit Sdn. Bhd
- OurCoin BlockChain Technology Sdn. Bhd.
- Quest Mining Technologies Sdn. Bhd.
- Rocket Integration Technology Sdn. Bhd.
- Shaneja Capital Sdn. Bhd.
- Sinegy Technologies (M) Sdn. Bhd.
- Tokenize Technology (M) Sdn. Bhd
- Vardiz Commerce Sdn. Bhd.
- Xbit Asia Sdn. Bhd.
The cryptocurrency industry in Malaysia is still in its relative infancy. Compared to its neighbor to the south, Singapore, Malaysia has been somewhat slower to adopt the digital assets. But with a rapidly increasing cost of living and devaluing currency, a growing number of enterprising Malaysians are recognizing the value of cryptocurrencies as a store of value and a hedge against inflation, in particular Bitcoin. And while several years ago, the meetups among cryptocurrency enthusiasts were small intimate gatherings, they have since started to grow to full scale, professionally-run and managed events. It may still be early days for cryptocurrency in Malaysia, but with the winds of political change in the air and a newfound confidence and optimism surrounding the country’s potential, there is reason to be optimistic about the growth of the cryptocurrency industry in Malaysia.