Suruhanjaya Sekuriti Malaysia (Securities Commission Malaysia) has granted full approval to cryptocurrency exchange operator Tokenize Malaysia to legally operate in the country, even as the nation remains under a strict lockdown due to the COVID-19 pandemic. The move makes Tokenize the second fully licensed digital asset exchange (DAX) in Malaysia, after Luno Malaysia.
Approval During Pandemic Lockdown
Malaysia imposed a nationwide Movement Control Order (MCO) in March 2020, later extended to at least April 14. Despite the crisis, the regulator continued to process cryptocurrency exchange applications. Tokenize Malaysia received its full approval on April 3, 2020, according to local media reports. CEO Hong Qi Yu told Bernama, the national news agency: “The digital asset industry is by far one of the best equipped and it is business as usual for us as the industry is used to working and communicating effectively across time zones and managing teams remotely.” Tokenize can now accept clients and operate its platform under the full regulatory framework.
Regulatory Background
Malaysia’s Securities Commission registered three Recognized Market Operators (RMOs) to establish and operate cryptocurrency exchanges after the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 came into force on January 15, 2019. According to the regulator, out of 23 crypto exchange applicants, only three — Luno Malaysia, Sinegy Technologies, and Tokenize Technology — received conditional approvals. Luno was the first to meet all requirements and obtain a full license. Tokenize now joins Luno as a fully approved operator. The SC previously warned: “Entities which have not been approved by the SC, including those which have previously been operating under the transitional period, are required to cease all activities immediately and return all monies and assets collected from investors.”
Japan Follows Similar Path
Just one week earlier, Japan also approved a new cryptocurrency exchange to operate amid the coronavirus outbreak, bringing the total number of registered crypto exchanges in Japan to 23. The simultaneous approvals in two Asian countries highlight a growing regulatory acceptance of digital assets even during economic turmoil. The IMF had declared a global recession, with 80 countries requesting financial assistance. Yet both Malaysia and Japan viewed crypto exchanges as essential financial infrastructure that could function remotely.
Implications
Malaysia’s decision to approve Tokenize Malaysia sends a clear signal that the country is committed to fostering a regulated digital asset ecosystem. With the pandemic accelerating digital transformation, regulators are recognizing the need to provide legal clarity for cryptocurrency businesses. The approval also sets a precedent for other exchanges seeking entry into the Southeast Asian market. As the world grapples with the economic fallout of COVID-19, the resilience of digital asset platforms may prove vital for future financial systems.