Kuala Lumpur: Malaysia’s digital asset market, which confronted subdued exercise within the preliminary half of final yr, witnessed a resurgence in buying and selling volumes through the latter half, in tandem with international market tendencies. This uptick, as highlighted within the Securities Fee’s (SC) Annual Report 2023, underscores the evolving panorama of digital investments inside the nation.
The SC’s report, launched not too long ago, attributed the subdued exercise in Malaysia’s digital asset market through the first half of the earlier yr to the aftermath of the collapse of cryptocurrency trade FTX on the finish of 2022. The repercussions of this incident reverberated throughout the cryptocurrency ecosystem, fostering a local weather of warning amongst buyers, who turned more and more conscious of the related dangers.
Nonetheless, the latter a part of the yr witnessed a major turnaround, marked by a surge in buying and selling volumes throughout Malaysian digital asset exchanges (DAXs). This resurgence, in accordance with the SC, was largely propelled by the notable uptick in costs of main cryptocurrencies similar to Bitcoin and Ethereum. The surge in buying and selling volumes was additional bolstered by worldwide asset managers’ expressed curiosity in launching cryptocurrency exchange-traded funds (ETFs) in america, injecting recent optimism into the market.
The SC’s report additionally sheds mild on the demographic composition of buyers taking part within the digital asset market, revealing that retail buyers, significantly these beneath the age of 45, constituted a major majority, comprising over 72 per cent of the investor phase throughout regulated DAXs.
Moreover, the SC famous the enlargement of buying and selling choices on DAX platforms, with the introduction of Avalanche (AVAX) and Polygon (MATIC) tokens in response to heightened demand from buyers for added buying and selling pairs. This transfer bolstered the full variety of tokens obtainable for buying and selling to 11, enhancing diversification alternatives for buyers.
The report additionally highlighted the emergence of preliminary trade choices (IEOs) as a fundraising mechanism, with operators launching platforms to facilitate token issuance for each securities and utility tokens. Moreover, the SC disclosed that approvals-in-principle had been granted to a few native digital asset custodians, with one commencing operations in 2023.
These custodial providers play a pivotal position in safeguarding digital property, offering a safe setting outfitted with superior safety measures to stop hacking makes an attempt and unauthorized entry. This improvement underscores Malaysia’s dedication to fostering a sturdy and controlled digital asset ecosystem, guaranteeing investor safety and market integrity.