It’s a go! The Securities Commission (SC) of Malaysia has granted Luno full approval to operate as a Recognised Market Operator (Digital Asset Exchange); the first cryptocurrency exchange in the country to receive this approval. Luno can now offer Malaysians the opportunity to safely and legally buy, sell and store cryptocurrency on its platform.
It has been a long, challenging journey for Luno since its entry into the Malaysian market in 2015. The global cryptocurrency company headquarted in London, went on to become the largest digital asset exchange in Malaysia in 2017.
The Securities Commission’s move to regulate the industry is a step in the right direction, although cryptocurrencies themselves, fundamentally, are free from regulation and control of any entity.
More regulators around the world have moved to regulate the industry to increase trust and weed out the bad actors. Regulations provides clarity for cryptocurrency companies to operate within existing frameworks, or new ones. This also ensures that approved cryptocurrency businesses have standards in place for the protection of customers and their funds.
David Low, general manager of Luno in Southeast Asia said, “This is a significant achievement and shows the importance of digital assets today and the long term value of cryptocurrency. We want to help educate Malaysians on how to safely buy, sell and store Bitcoin and Ethereum, using an exchange approved and regulated by the SC.”
Earlier in June, the SC conditionally approved Luno’s application as a Recognised Market Operator (Digital Asset Exchange). Luno weas one of three crypto exchanges to receive this conditional approval. The SC had announced in January that the offering of digital assets and associated activities will require the authority’s authorisation and companies will need to comply with relevant securities laws.
SC guidelines state that companies dealing with digital assets will need to put in place anti-money laundering and counter-terrorism financing (AML/CFT) rules, cybersecurity and business continuity measures, amongst other things.
The SC’s stamp of approval is great news for Luno and Luno customers alike, adding some certainty to the inherent speculative nature of crytocurrency.
Bitcoin (BTC) closed at USD9,346.33 (~MYR39,123.74) while Ethereum closed at USD186.05 (~MYR778.81) as of 1.59PM UTC today.