DESPITE being legal to trade, cryptocurrencies have yet to witness widespread adoption in the country.
One of the key obstacles hindering the widespread adoption of cryptocurrencies in Malaysia is the lack of awareness and understanding among the public.
According to Luno Malaysia's country manager, Scarlett Chai, cryptocurrencies are still considered a nascent technology, leading to hesitancy among potential investors.
In addressing this issue, she said education and awareness campaigns are essential drivers in unlocking the potential of crypto investments.
Building confidence
To bolster investor confidence, regulatory clarity is crucial. As uncertainties often deter potential investors, Chai said clarity on regulations will provide consumers with stronger assurances and security guarantees.
"Collaborative efforts involving regulators, policymakers, and industry stakeholders will empower Malaysians with a comprehensive understanding of the technology behind digital assets," she said.
"It is important for us to collaborate with regulators to ensure that compliance measures do not inhibit innovation.
"We have a great working relationship with partners like the Securities Commission Malaysia (SC) in building customer trust and confidence, so that they may invest with the highest security standards," she said at Luno marking its 10th anniversary recently.
The introduction of crypto into the traditional fintech space has also played a role in changing institutional appetite for crypto.
"At the local level, we have also seen new regulated industry players that are targeting institutional customers emerge in the market," said Chai.
Commenting on the potential of cryptocurrencies being used for daily e-commerce transactions, Chai said despite mainstream investment assets not being utilised for daily payments, crypto advocates believe that progressive regulatory developments and proactive consumer education will pave the way for broader adoption.
Fast-growing market
Boasting over 12 million users globally, Luno said it has witnessed substantial growth in Malaysia, with more than 840,000 Malaysians signed up to the platform.
Currently, the average age for Luno Malaysia customers is 34, with the 30-39 age group comprising the highest number of investors.
Luno Asia-Pacific's general manager, Aaron Tang, said Malaysia is one of the fastest-growing markets, and Luno is excited for what's to come over the next 10 years.
At the event, Luno also held a panel discussion to shed light on the importance of a well-regulated digital assets landscape, which fosters industry stability and growth.
The panel discussion featured key players in the fintech and cryptocurrency landscape in Malaysia, including Scarlett Chai; CoinGeko head of research, Chan Zhong Yang, and Jirnexu's founder and director, Liew Ooi Hann. The session was moderated by Michelle Chin, founder of Her Duit, a women-focused personal finance platform.
Reflecting on the past 10 years, Chai spoke on how a well-regulated digital assets landscape contributes to industry stability and growth, as well as investor confidence.
"Although we're under a tough macro-economic climate, we have still managed to grow our customer base. We believe that this points to positive shifts in investor mindsets, as they adopt a longer-term perspective towards crypto investment.
"Regardless of market conditions, we remain committed to proactively supporting the Malaysian digital economy agenda through our education and awareness initiatives, and prioritising investor safety and customer experience," she said.
The panel also explored the macro impact of global events on the crypto landscape, and how certain learnings can be adapted and adopted by digital assets industry stakeholders in Malaysia.
Chan said: "Shifts in the global crypto space will have knock-on effects on local markets. Some are opportunities for growth, while others may bring new challenges.
"As the industry is still nascent, stakeholders need to be agile in reacting to new global developments, while also taking into account the local Malaysian context. Ultimately, growing the local industry has to be a concerted effort between industry players as well as policymakers."
The next 10 years
Blockchain integration with AI (artificial intelligence) is the next disruption to look out for, and these combined technologies can revolutionise anything from the supply chain to the finance sector.
"The positioning of crypto within the realm of traditional finance has also created shifts in investor behaviour, and stakeholder collaboration is necessary for continuously evolving the digital assets landscape and set the stage for mainstream acceptance and integration of crypto into everyday life," said Liew.