Malaysia’s largest independent financial services company, Kenanga Investment Bank Berhad, is reportedly set to include cryptocurrencies in its investment after seeing the pace of improvements in digital coins’ usage worldwide. However, the company is expected to go through the normal acquisition processes before purchasing digital assets of its choice.
In one of its press releases on Monday, the company confirmed its readiness to invest in the crypto space after reaching an agreement with Tokenize Exchange to buy at least 19% equity share in its exchange arm.
Kenanga Buys stake in crypto exchange Tokenize
Judging by Malaysia’s traded market shares, the Token Xchange platform is currently the second-largest exchange platform. The Malaysian Security Commission has been licensed to continue its services as one of the Digital Asset Exchange (DAX) firms.
Hence, Token Xchange has the legal backing to offer crypto users the platform to trade diverse digital currencies, including Bitcoin, Ethereum, and Litecoin. Having carried all required findings on the exchange platform, Kenanga believes Token Xchange remains one of the best crypto-based firms to partner with. Hence, it completed the first funding round through its private equity firm, Kenanga Private Equity Sdn Bhd.
The Kenanga Investment Bank’s group managing director Datuk Chai Wei Leong said the company is curious and eager to invest in cryptocurrency because it is inevitable to see the industry becomes one of the most improved sectors in the nearest future. According to him, the investment won’t only give them the chance to invest in Bitcoin.
Still, it would equally permit buying and trading other developing currencies such as Litecoin, Polkadot, and Cardano’s ADA. He equally predicted digital property emergence in the nearest future, considering cryptocurrency’s fast-paced growth and development. On their part, Hong Qi Yu and Tokenize Malaysia’s CEO praised Kenanga’s decision to be part of the crypto industry.
Malaysia SEC Intensify Security Measures
Having launched Rakuten Trade from its partnership with Japanese company Rakuten in 2017, the company sealed a deal with Merchantrade Asia, which played a massive role in the launch of Malaysia’s first stockbroker, Kenanga Money. The Malaysian firm will hope that this relationship will hope that this business relationship brings more fame and glory.
Meanwhile, the Malaysian security exchange commission has reportedly strengthened its security measures following the global increase in cryptocurrency use. More private institutions and business entities are beginning to play an active role in the industry; hence many governmental agencies keep a close watch on the events taking place in the crypto space.
As they are fondly called, SC Malaysia revisited the rules and regulations guiding crypto investors and exchange platforms as part of its desire to prevent online theft. According to the security commission, the decision to change the legal framework ensures that no fraudulent and unsupported acts occur. This measure isn’t only seen in Malaysia because other countries have taken the same step towards promoting safe and secured transactions in their countries’ financial part.