Growth of Malaysia’s Digital Asset Ecosystem Through Crypto Trading

The Securities Commission Malaysia reports significant growth in digital assets and cryptocurrency trading, indicating increasing investor familiarity. Key points include a 2.6-fold increase in RMO-DAX trading, successful IEO fundraising, and digital investment management growth exceeding 500% since 2018. Additionally, collaborations are being formed to explore tokenized bonds, points to the evolution of Malaysia’s capital market.

The Securities Commission Malaysia (SC) has reported notable growth within Malaysia’s digital asset ecosystem, indicating an increasing comfort among Malaysian investors with cryptocurrency trading. Their Annual Report 2024 outlines this trend, which is bolstered by the emergence of regulated market players, aligning with the SC’s objective to diversify and democratize the capital market.

The SC noted a significant resurgence in crypto-asset trading activities among regulated market operators in the Digital Asset Exchange (RMO-DAX) sector. This advancement includes a growing assortment of digital asset products, such as digital asset funds and initial exchange offering (IEO) tokens, alongside heightened interest in blockchain applications and tokenization within the financial market.

According to the SC, the average daily trading value of RMO-DAXs has experienced a 2.6-fold increase in 2024 compared to the prior year. Additionally, IEO operators successfully launched their first tokens for fundraising, yielding RM48 million from a tokenized Shariah-compliant investment note and two utility tokens.

The report emphasized blockchain technology’s features, including programmability, transparency, and accessibility, which are attracting global interest in tokenization of securities. To strengthen the future of Malaysia’s capital market, the SC has partnered with Khazanah Nasional Bhd to explore tokenized bond or sukuk issuance, examining various applications of tokenization, including smart contracts.

Digital investment management (DIM) has also experienced tremendous growth, as highlighted by the SC, which reported an increase of over 500 times since December 2018. The total assets under management within DIM reached RM1.9 billion by December 2024. Furthermore, the cumulative value of subscriptions for capital market products through e-services platforms exceeded RM53 million, indicating more than a twofold growth from December 2023.

In just 2024, subscriptions totaling approximately RM33 million were recorded, representing 61 percent of the overall subscriptions.

The Securities Commission Malaysia’s insights reveal significant growth in the digital asset landscape, showcasing a rise in cryptocurrency trading and digital investment management. The collaboration with Khazanah Nasional Bhd on tokenization, coupled with the impressive growth metrics, underscores a robust trajectory for Malaysia’s capital market. This development highlights the importance of regulated players and innovative financial products in fostering a more inclusive economic environment.

Original Source: www.bernama.com