Malaysia Becomes the Next Country to Approve Cryptocurrency Exchange Amid Covid-19 Crisis | HITECHGLOBE

Malaysia Becomes the Next Country to Approve Cryptocurrency Exchange Amid Covid-19 Crisis

adminApril 4, 20208min1080
adminApril 4, 20208min1080

Malaysia’s Securities Commission has given full approval to a cryptocurrency exchange operator to legally operate in the country despite the nationwide lockdown due to the coronavirus pandemic. Recently, Japan also approved a new cryptocurrency exchange as the country continues to fight the covid-19 outbreak.

Crypto Exchange Receives Full Approval During Lockdown

Suruhanjaya Sekuriti Malaysia, the Securities Commission Malaysia (SC), has approved a cryptocurrency exchange despite the current coronavirus pandemic crisis the country is facing. The nationwide lockdown has already been extended until at least April 14. By that time, the Malaysian government hopes that aggressive testing will have contained the pandemic.

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.

Suruhanjaya Sekuriti Malaysia, the Securities Commission Malaysia (SC), has fully approved a cryptocurrency exchange operator despite the country extending the nationwide lockdown until at least mid-April.

Referring to the covid-19 pandemic, Tokenize Malaysia CEO Hong Qi Yu was quoted by Malaysian national news agency Bernama as saying:

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.

Other Approved Crypto Exchange Operators in Malaysia

On Suruhanjaya Sekuriti Malaysia’s website, the regulator explained that it has registered three recognized market operators (RMOs) to establish and operate cryptocurrency exchanges in Malaysia. This followed the coming into force of “the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019” on Jan. 15 last year, designed to regulate DAX operators.

Suruhanjaya Sekuriti Malaysia conditionally approved three crypto exchange operators in June last year: Luno Malaysia, Sinegy Technologies, and Tokenize Technology. Luno and Tokenize have now received full approval.

The three conditionally-approved crypto exchange operators were Luno Malaysia, Sinegy Technologies, and Tokenize Technology. 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. Suruhanjaya Sekuriti Malaysia also published digital asset guidelines in January this year outlining the requirements for digital token offerings. The regulator previously clarified:

Entities which have not been approved by the SC, including those which have previously been operating under the transitional period, are required to cease all activities immediately and return all monies and assets collected from investors.

Last week, Japan set an example by approving a new cryptocurrency exchange to operate in the country despite the coronavirus pandemic. The Land of the Rising Sun now has a total of 23 registered crypto exchanges.

What do you think about Malaysia approving a crypto exchange despite the lockdown? Let us know in the comments section below.

Tags in this story
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Image Credits: Shutterstock, Pixabay, Wiki Commons, Suruhanjaya Sekuriti Malaysia

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