The world’s leading cryptocurrency platform – Binance – reportedly revealed intentions to join forces with Malaysian exchanges to boost the local digital asset sector.
Malaysia Could Benefit From Binance’s ‘Robust’ Platform
Binance has displayed its ambition to strengthen its global presence, and South East Asia is among its key targets. Three months ago, it made an equity investment in MX Global (one of Malaysia’s cryptocurrency exchanges). The latter will use the capital to educate locals about crypto’s merits, find talents in the space, and develop new features within the domestic regulatory framework.
According to a recent coverage, Binance will double down on its efforts in Malaysia, vowing to work closely with MX Global and other local trading platforms. The goal of the initiative is to accelerate crypto adoption in the region and raise awareness among Malaysians.
Datuk Fadzli Shah – CEO at MX Global – stated that his company believes crypto represents the future. He also expects to see the industry functioning under appropriate rules.
“Working closely with the Securities Commission, we want to ensure that the products that we introduce to the Malaysian market are worthy and safe for the investors to participate in this global wave of innovation,” the exec added.
Additionally, Shah praised Binance for having “the most robust and widely used platform in the world.” He concluded that collaborating with the company could positively affect local exchanges and the Malaysian economic environment.
Speaking on the matter was also Changpeng Zhao – the head of Binance. He reiterated his firm’s ambitions to stretch to maximum areas across multiple regions and added that his company wants to cooperate with regulators and promote innovation.
“The industry is large enough that for the average consumers, when we want to reach mass adoption, we do need regulations. We need some guidelines to operate in, and we would very much like to work with our partners and regulators to shape that together. Protecting users costs a lot of money in the short term, but in the long run, it will be a big win.”
Malaysia’s Crypto Ecosystem
Earlier this year, the country was rumored to follow El Salvador’s example and adopt bitcoin as legal tender. Back then, the Communication Ministry raised hopes that the government would allow such a move, arguing it could be beneficial for the younger generations.
Shortly after, though, the nation’s Deputy Financial Minister – Mohd Shahar Abdullah – rejected this possibility. According to him, bitcoin and the altcoins “are not suitable for use as a payment instrument due to various limitations.”
While Abdullah believes Malaysia should not interact with cryptocurrencies, this is not the case for central bank digital currencies (CBDCs):
“The growing technology and payment landscape have prompted the Bank Negara Malaysia to actively assess the potential of bank’s digital currency central (or CBDC).”