Source: Media Outreach
KUALA LUMPUR, MALAYSIA – Media OutReach Newswire – 5 August 2024 – The growth of financial technologies, including blockchains and cryptocurrencies, depends on how well the legal system can adapt. Globally, the legal status of cryptocurrencies remains ambiguous as most countries still need to establish comprehensive laws to govern them. However, only a few states explicitly prohibit crypto mining. While the global regulatory landscape continues to evolve, Malaysia and Singapore offer unique approaches to cryptocurrency supervision. In this article, the experts of Octa Broker take a closer look at the current status and prospects of crypto in these countries.
Popularity
Malaysia and Singapore both play a significant role in the Southeast Asian digital finance landscape. In 2023, Malaysia ranked among the top 30 countries for crypto adoption based on transaction volume, with its peer-to-peer (P2P) exchange trade volume placing it 40th globally. As for Singapore, it is currently a regional leader in cryptocurrency adoption, with 49% of its population aware of cryptocurrencies and 12% actively owning them. In 2023, the nation attracted $627 million in crypto funding, supported by a skilled workforce and favourable fiscal policies.
Platforms like Octa, a broker with globally recognised licences, are capitalising on the growing interest in crypto by offering low-cost 24/7 trading, including weekends, which makes it easier than ever for investors to dip their toes into the crypto waters.
Regulation and Future Prospects
Malaysia regulates digital assets through the Capital Markets & Services (Digital Currency and Digital Token) Order 2019. While cryptocurrencies are classified as securities, they are not recognised as legal tender by Bank Negara Malaysia (BNM), the country’s central bank. Companies involved with digital currencies or tokens are required to register with the local authority. The regulations also enable companies to raise funds through token issuance but require due diligence and compliance with anti-money laundering (AML) and anti-terrorism financing policies. ‘Despite these regulations, Malaysia’s legal framework still lacks transparency and consistency, posing risks for businesses trying to navigate the complex landscape. As crypto popularity rises, new policies may emerge’, said Kar Yong Ang, the Octa broker’s financial market analyst.
In contrast with its neighbour, Singapore already boasts a robust regulatory framework that enhances its status as a global financial centre. The Payment Services Act (PSA), introduced in 2019, serves as the primary legal framework governing digital payment tokens (DPTs). It mandates licenses for activities like operating exchanges and providing digital wallets. Additionally, the Securities and Futures Act (SFA) regulates DPTs that resemble capital market products, while the Commodity Trading Act applies to asset-backed DPTs, treating them as commodities. This comprehensive regulatory approach ensures a structured environment for cryptocurrency activities, fostering innovation while maintaining security. Singapore’s strong telecommunications infrastructure, highly skilled workforce, and favourable fiscal policies, such as the absence of capital gains tax, make it an attractive hub for digital innovation. A thriving community of startups, accelerators, and incubators foster innovation in the crypto sector. According to Statista, the country’s crypto market is projected to grow by 8.79% annually from 2024 to 2028, reaching $479.5 million in value by 2028. ‘The growth is supported by the Singaporean government’s proactive investments in blockchain technology, research, and fintech innovations that explore new blockchain applications’, noted Kar Yong Ang, the Octa broker’s financial market analyst.
As Malaysia and Singapore shape and hone their respective cryptocurrency regulatory policies, their strategies highlight different balances between innovation and security. Malaysia faces challenges in regulatory clarity, while Singapore strengthens its position as a crypto-friendly nation. The evolving landscape in these countries will shape the future of cryptocurrency adoption in Southeast Asia, providing valuable insights for other nations looking to embrace the digital revolution.
Hashtag: #Octa
The issuer is solely responsible for the content of this announcement.
– Published and distributed with permission of Media-Outreach.com.
