Binance places its chips on MX Global as it sees opportunities in Malaysia and the region.
Strategic Partner
MX Global, one of the four Recognized Market Operators (RMO) in Malaysia received a timely boost from Binance and Cuscapi through capital injection as it looks to capitalize on the growing crypto industry in Malaysia and its region.
Binance made an equity investment in the group but details on the equity participation are not disclosed. Cuscapi Berhad a digital solutions provider subscribed for redeemable convertible preference shares (RCPS) issued by the group.
The Chief Executive Officer (CEO) of MX Global, Dato’ Fadzli Shah told BSC.News,
‘Our partnership with Binance is an immense opportunity to bridge decentralized offerings into localized versions that are safe for investors, and at the same time for agile policymaking that can leverage the transparency, scalability, and immutability of the blockchain. We are proud to be able to contribute to the growth of the Malaysian ecosystem and hopefully, this will set an example for other regulated markets.’
The capital injection will be utilized towards building brand awareness, hiring more talents, and assisting in developing the Malaysian regulatory framework.
Malaysian Framework of Compliance
Malaysia categorizes cryptos as digital assets that fall under the purview of the Malaysian Securities Commission (SC). The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 takes effect on 15 January 2019, mandating all digital currencies and tokens to comply with existing securities law and regulations.
Malaysia is embracing the crypto economy and has been taking steps to regulate this space. The Malaysian Securities Commission has approved four digital asset exchanges and will soon be announcing the successful applicants for its Initial Exchange Offering (IEO) licenses.
On July 30 last year, the SC announced that enforcement action is taken against Binance Holdings Limited and demanded that access to its platform for Malaysian users be blocked.
The Compliance Route
Binance took a similar route in Indonesia, a neighboring country to Malaysia by acquiring a majority stake in a local licensed exchange. The acquisition of TokoCrypto gave Binance exposure to the Indonesian market. The local crypto exchange platform is regulated by Indonesia’s Commodity Futures Trading Regulatory Agency.
Regulation is necessary and Binance as the leading global crypto platform has a role to play in shaping the crypto ecosystem. Southeast Asia is an attractive region for crypto-based platforms and projects.
MX Global’s Strategic Positioning
MX Global is bullish on its future prospects. Dato’ Fadzli Shah shares his views with BSC.News,
‘In order to be competitive, we have to introduce more cryptocurrencies to the whitelist, enable digital asset/digital asset pair trading, and welcome foreign investors onto our platforms. I am confident that Malaysia also can be on the producer side of the equation. We have birthed the likes of CoinGecko and Etherscan, so I believe our talent pool is innovative enough to champion local Blockchains, tokens, or cryptocurrencies toward global adoption.’
Malaysia can be the next crypto hub for the Southeast Asia region.
Source : bsc.news
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