Malaysia's Securities Commission (Suruhanjaya Sekuriti Malaysia) has granted full approval to cryptocurrency exchange operator Tokenize Malaysia to legally operate as a digital asset exchange (DAX) despite the nationwide lockdown imposed due to the COVID-19 pandemic. The lockdown, originally scheduled to end on March 31, was extended to at least April 14 as the government ramps up aggressive testing. This move underscores the regulator's commitment to advancing the digital asset ecosystem even in times of crisis.
Approval Process and Regulatory Framework
The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 came into force on January 15, 2020, mandating that all DAX operators must obtain approval from the Securities Commission. Out of 23 applicants, only three received conditional approval: Luno Malaysia, Sinegy Technologies, and Tokenize Technology. Luno became the first to meet all regulatory requirements and received full approval. Tokenize Malaysia has now followed suit, becoming the second fully licensed crypto exchange in the country.
According to the Malaysian national news agency Bernama, the Securities Commission explicitly 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.” This regulatory clarity and enforcement have created a high bar for entry, ensuring only compliant and robust platforms survive.
CEO Statement and Operational Resilience
Tokenize Malaysia CEO Hong Qi Yu stated that the digital asset industry is uniquely positioned to thrive during lockdowns. “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,” he said. His remarks highlight how the decentralized nature of crypto businesses makes them resilient to physical disruptions like pandemics. The exchange can now accept clients and expand its services under full regulatory oversight.
Japan Also Greenlights New Exchange
It is not only Malaysia that is embracing crypto amid the COVID-19 crisis. Japan, known as the Land of the Rising Sun, also approved a new cryptocurrency exchange last week, bringing its total number of registered exchanges to 23. Japan's Financial Services Agency (FSA) maintains a careful but progressive stance, regularly updating the registry to include compliant entities. The simultaneous approvals in Malaysia and Japan signal that Asian regulators are using the pandemic period to strengthen financial infrastructure and encourage innovation.
The International Monetary Fund (IMF) recently declared a global recession, with over 80 countries requesting emergency financial assistance. In such a volatile economic environment, the approval of cryptocurrency exchanges may serve as a hedge against traditional market instability. Both Malaysia and Japan are positioning themselves as hubs for digital finance, even as the world battles the health crisis. Industry observers believe that these regulatory green lights could accelerate mainstream adoption of cryptocurrencies in the region.