Ever since the first crypto was developed in 2009, many more countries have been opening up to this intriguing technology. In Malaysia, things haven’t been any different. Both the young and the old have been turning to crypto, fascinated by its benefits – instant and cheap transfers. So, what may things be like for this industry in Malaysia? Why don’t you hang around to discover for yourself?
Well, you can agree that things can change so fast in the crypto sector, and thus, there is a need to stay updated. For instance, sudden changes in demand and supply can greatly affect the prices of Solana and other tokens. And for those who are specifically interested in Malaysia’s crypto industry, this article will offer you insights into what you just need to stay ahead.
The popularity of crypto in Malaysia
By 2022, Bitcoin ranked as the most popular crypto, according to Statista, owned by about 35% of respondents. In 2024, the industry has grown even more and is expected to reach US$306.60m. And for the next four years, Statista expects revenue to continue growing by almost 8% to reach US$414.40m.
Surprisingly, this projection by Statista comes after the industry did not perform so well last year. Do you remember the declining prices of Bitcoin between May and June, which affected several markets? Apparently, Malaysia was one of them. According to a report by the Edge, adoption reduced to about 15%, down from 20% in the previous year. Of the total number of crypto holders, 63% were men, while women accounted for 37%.
You’d be surprised to note that despite these changes, the country still ranked among the top 30 countries in terms of crypto adoption. Its peer-to-peer trade volume placed it at the 40th position globally. The sustained interest in crypto amid varying circumstances explains why platforms like Binance are enhancing their relevance by providing low-cost, 24/7 trading. According to Medium, this platform is the second most popular crypto exchange in the country and boasts a depth and liquidity that ensures transactions are seamless.
The government’s actions
Just recently, MIMOS Berhad, the research and development division of the Malaysian Government, confirmed a deal with the Worldcoin Foundation, whose aim was to adopt Worldcoin’s infrastructure into Malaysia’s digital system. The point of the collaboration is to enhance digital credentials and digital proof of humanness at a time when artificial intelligence is taking the world by storm.
Could such moves be the reason why Statista anticipates the crypto sector will continue increasing in the coming years? Of course, when the government adopts crypto-based technologies, it might leave citizens with a positive impression, which might encourage further spread.
Worldcoin uses biometric data—iris scans—to give every person a unique identifier, known as a World ID. This ID is then stored on a decentralized blockchain to ensure privacy and security. All this is to provide a solution that can help separate AI from humans, especially now that AI has become a discussion we cannot evade.
Blockchain initiatives
The Malaysia Blockchain Week just ended on August 1st after running for two days. The event, which was to be graced by the presence of YB Tuan Gobind Singh Deo, the country’s Minister of Digital, sought to explore the future of Web3.
Malaysia has recently made efforts to catch up with the global blockchain market, which now stands at USD 26.91 billion. According to Noelle Lee of the Lydian Labs, the government has actually been implementing supportive policies and regulations necessary to encourage blockchain development.
The conference was, therefore, strategically placed to encourage conversations between parties interested in this technology and see how they could maximumly take advantage of it. In fact, the CEO of Malaysia Digital Economy Corporation, Ts. Mahadhir Aziz highlighted that the country was committed to nurturing a conducive environment for partnerships that would see the technology advance even further. Such moves can encourage further adoption of crypto in the coming years.
What about regulation?
Well, although cryptos are not considered legal tender by the Bank Negara Malaysia, they are classified as securities and regulated through the Capital Markets & Services Order 2019. If your company deals with digital tokens, you will need to register with the local authority. Something you must also know is that you can raise funds through token issuance, only that you’ll have to be compliant with anti-money laundering and anti-terrorism financing regulations.
Although such regulations exist, the regulatory landscape is still quite complex, especially when you compare it with neighboring countries. Singapore, for instance, has the Payment Services Act (PSA) 2019 and the Securities and Futures Act (SFA). On the one hand, PSA primarily governs digital payment tokens and mandates licenses for things like operating exchanges. On the other hand, SFA monitors digital payment tokens that look like capital market products.
Final thoughts
Even in 2024, crypto remains a topic of interest in Malaysia. The country has continued to see more individuals turning to digital tokens, particularly because of their benefits. Other moves by the government, like welcoming the blockchain week, could also positively impact the adoption of these digital currencies. And looking beyond 2024, more citizens might continue adopting crypto to enjoy its benefits, just as research institutions like Statista projected.
