Malaysian Securities Regulator Approves Crypto Trading Platform

Published at: April 3, 2020

Following a nine-month-long probationary period, Malaysia-based cryptocurrency trading firm, Tokenize Malaysia, has received full approval from local securities watchdog.

With the approval to operate a Digital Assets Exchange, the company’s cryptocurrency trading platform, Tokenize Xchange, became legally approved and regulated by the Securities Commission (SC) of Malaysia, local news outlet, SoyaCincau, reported on April 3. The exchange offers fiat-to-digital asset pairings.

Malaysian laws require that local cryptocurrency exchanges register with the SC, after which they have up to nine month to achieve compliance with the SC’s regulation standards.

Commenting on the development, Hong Qi Yu, CEO and CTO at Tokenize Malaysia, said:

“We are now able to go ‘live’ in Malaysia and it is perfect timing –- as we have received many interested enquiries from individuals aged 24 to 50 years old who are keen to invest in digital assets.”

The SC registered the firm — along with Luno Malaysia and Sinegy Technologies — last June. At the time, Luno stated that the aforementioned three exchanges were the only registered digital asset exchanges to operate in Malaysia.

The SC introduced the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on January 15, 2019. The regulation classifies digital currencies, tokens, and crypto-assets as securities, placing them under the Securities Commission’s authority.

Crypto regulations in other countries

While some countries undertake efforts to develop adequate cryptocurrency-related regulations, others are in no hurry to give digital assets the green light. Thus, after facing multiple delays, the adoption of Russia’s major cryptocurrency law will be postponed again, this time due to the coronavirus.

A pending bill may still inhibit cryptocurrencies from flourishing in India, with India’s parliament yet to rule on the "Banning of Cryptocurrency and Regulation of Official Digital Currency Bill" from 2019. If passed, the bill will introduce unique regulatory frameworks for virtual currencies, utility tokens, and commodity-backed tokens.

Tags
Regulation
Asia
Cryptocurrency Exchange
Malaysia
Related Posts
Malaysian regulators add Huobi to investor alert list
The Securities Commission (SC) of Malaysia issued a statement on Aug. 22 regarding Huobi operations in the country. According to the statement, the crypto exchange is now on the SC’s Investor Alert List. Malaysian financial regulators say Huobi has been operating a digital asset exchange in the country without official registration with the SC. Huobi Global [https://t.co/la9Y3ntGuq] has been added to the SC’s Investor Alert List for operating a digital asset exchange (DAX) in Malaysia without being registered with the SC. pic.twitter.com/z3IGgnCa0t — SC Malaysia (@SecComMY) August 22, 2022 In a follow-up tweet, the SC said that any operations which …
Regulation / Aug. 23, 2022
BTC and OKB plunge after OKEx suspends withdrawals
Major crypto asset exchange OKEx has suspended cryptocurrency withdrawals, announcing that one of the holders of its private keys is “currently cooperating with a public security bureau” concerning ongoing “investigations.” The exchange noted that it has been “out of touch” with the key-holder, preventing the "associated authorization" from being completed. OKEx plans to resume digital asset withdrawals “immediately” once the key-holder “is able to authorize the transaction.” Citing its terms of service, OKEx said it had decided to suspend withdrawals but added that the security of its customers’ assets “will not be affected” by the events. Bitcoin (BTC) has fallen …
Bitcoin / Oct. 16, 2020
Binance Isn't Permitted to Operate in Malaysia, Local Regulator Says
Top cryptocurrency exchange Binance was added to the Securities Commission Malaysia’s list of unauthorized entities earlier today. According to the regulator, the digital asset trading platform is “operating a recognized market without authorization from the SC”. Malayisan law requires cryptocurrency exchanges to register as Digital Assets Exchanges with the SC. After the initial filing, they get up to nine months to meet the SC’s regulation standards. So far, only three cryptocurrency platforms — Luno, Sinegy and Tokenize — have received full approval from the local watchdog. Notedly, in March Binance announced that it was going to test the South East …
Regulation / July 17, 2020
Singapore Act to License Cryptocurrency Firms Comes Into Effect
Legislation regulating the operations of cryptocurrency firms in Singapore comes into effect today, Jan. 28. The new Payment Services Act will regulate cryptocurrency payments and trading enterprises under some aspects of the regulatory regime that currently governs traditional payment services and require them to hold a license. Crypto payment services must also comply with the Financial Advisers Act, Insurance Act, Securities and Futures Act and the Trust Companies Act. The new rules place crypto services under the oversight of the Monetary Authority of Singapore. The regulator announced in a press release published earlier today that the new framework is expected …
Bitcoin / Jan. 28, 2020
Bithumb ordered to pay outage damages to investors by South Korean court
The ongoing saga of the South Korean cryptocurrency exchange Bithumb continues, this time with ruling from local courts. On Jan. 13 the South Korean Supreme Court finalized its ruling that the exchange must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017. According to a local news source, the damages are equivalent to $202, 400 - or 251.4 million in the regional currency won. Initially, a district ruled against the investors, though it was later overturned. The finalized ruling from the Supreme Court ordered damages to be paid ranging from as little as $6 to around …
Regulation / Jan. 16, 2023