Luno is the first cryptocurrency exchange to receive approval from the Securities Commission of Malaysia to be able to offer Malaysians access to their highly-regarded exchanged. As an approved provider, Luno was granted full operational approval by the Securities Commission last month. Since relaunching in Malaysia, more than RM2.5 million worth of digital assets had been traded within the first ten days.
Having first up operations in Malaysia in 2015, Luno had become the largest digital asset exchange in Malaysia by 2017 and was heavily involved in engagements with regulators around new cryptocurrency regulations for Malaysia. The Securities Commission has been moving in the right direction to regulate the industry, although cryptocurrencies are fundamentally free from regulation and control of any entity. In fact, the regulations provide clarity for cryptocurrency companies to operate within existing frameworks or new ones.
Speaking at the relaunch event, Marcus Swanepoel, Luno CEO said regulators like Securities Commission in Malaysia, who work with new digital assets and blockchain technology show real leadership in the sector as they are opening the way for investors, traders and individuals in the country to maximise the benefits of a new financial system.
“Cryptocurrencies are the gateway to the IR4.0. The future of financial services can be safe, reliable, cheap and accessible to all. Governments and regulators across the region will take note of this and follow the Malaysian lead, providing clarity for cryptocurrency companies to operate in and within existing frameworks or new licenses. Collaborations like these will help increase trust, weed out bad actors and form the foundation for large scale institutional adoption. It will also ensure that the cryptocurrency business has adequate standards in place for the protection of customers and their funds.”
He added that all Malaysians will be able to participate in this. For those who are not sure about cryptocurrencies and want to learn about it, there are educational tutorials on the Luno app and website to help educate them on cryptocurrencies like BitCoin and Ethereum, and blockchain technology.
Also present at the launch was Surina Shukri, MDEC CEO.
“The interest in blockchain has been growing, especially with the emergence of cryptocurrencies like Bitcoin and Ethereum, now becoming mainstream. Today, there is a sharing recognition that blockchain is real, and it can serve as a solution for businesses across industries and use cases. Although blockchain has not reached its full potential, the technology is seen as a connecting platform that can enable many business processes in the future. The question for executives now is not will blockchain work but how we can make blockchain work for us.”
She added that these are the driving factors that encourage the development of cryptocurrencies. If done so right, it will set the standard for future growth and development, which is made possible by groundwork on national strategies and financial literacy.
During the media conference after the launch, Marcus pointed out that the cryptocurrency industry has been challenging over the last few years as the technology was new and people were still not very clear about it.
“The story of Malaysia is really a proxy for the story of our industry. It just so happens that Malaysia has been very progressive. If you look at the world now, you will see regulators regulating and banks moving closer to crypto companies.”
Ranked in the top-ten of the CryptoCompare Exchange Benchmark, Luno has over three million customers spanning over 40 countries. Luno is also expected to open its services in Singapore soon after two banks opened accounts on its platform. Like Malaysia, Singapore is also warming up to cryptocurrency.