PETALING JAYA: Luno has received full approval from the Securities Commission Malaysia (SC) to operate as a recognised market operator (digital asset exchange or DAX) as it has satisfied all the required conditions.

With that, the digital exchange operator is able to offer Malaysian the opportunity to safely buy, sell, and store cryptocurrency on its platform. Luno is the first cryptocurrency exchange in Malaysia to receive this approval.

In June, the SC registered three recognised market operators – Luno, SINEGY Technologies (M) Sdn Bhd and Tokenize Technology (M) Sdn Bhd – to establish and operate DAX in Malaysia. There were given nine months to comply with all regulatory requirements.

The SC’s announcement in June followed the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on Jan 15, 2019, and the subsequent issuance of the revised Guidelines on Recognised Markets on Jan 31, 2019 to introduce new requirements for DAX operators.

Meanwhile, DAX operators who have not been approved by the SC are required to cease all activities immediately and return all monies and assets collected from investors.

“This is a significant achievement and shows the importance of digital assets today and the long-term value of cryptocurrency,” said Luno general manager of Southeast Asia David Low in a press release.

“We want to help educate Malaysians on how to safely buy, sell and store Bitcoin and Ethereum, using an exchange approved and regulated by the SC.”

Low said more regulators around the world are providing clarity for cryptocurrency companies to operate either within existing frameworks, or with new licenses.

“This will help increase trust, weed out most (if not all) of the bad actors, and form the foundation for large-scale institutional money to come into the crypto ecosystem. It will also ensure that approved cryptocurrency businesses have adequate standards in place for the protection of customers and their funds.”

Headquartered in London, Luno has a team of over 300 with regional hubs in Singapore and Cape Town. It has presence in more than 40 countries with over 3 million customers (wallets).