Luno Reflects on its Journey in Malaysia After a Decade in Crypto

Luno Reflects on its Journey in Malaysia After a Decade in Crypto

by August 8, 2023

In the ever-evolving landscape of fintech and digital assets, Malaysia has emerged as a promising hub for cryptocurrency and digital asset trading. Among the pioneers leading this transformation is Luno Malaysia, the first to obtain regulatory approval from the Securities Commission (SC).

With its user-centric approach, robust regulatory compliance, and commitment to education, Luno has fostered a safe and secure environment for digital asset trading in Malaysia.

As Luno celebrates its 10th anniversary this year, it is evident that Malaysia’s supportive regulatory framework, tech-savvy population, strategic positioning, and collaborative efforts have positioned it as a favourable destination for digital asset enthusiasts.

Regulatory framework and safety measures

The country’s forward-thinking regulatory framework is central to Malaysia’s rise as a conducive environment for digital asset trading. In 2019, the Securities Commission (SC) released comprehensive guidelines tailored to operating digital asset exchange platforms like Luno.

These guidelines addressed consumer protection and market integrity and emphasised compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.

Scarlett Chai, Country Manager at Luno Malaysia

Scarlett Chai, Country Manager at Luno Malaysia

“Luno’s success in Malaysia was deeply rooted in our commitment to regulatory compliance,” said Scarlett, the Country Manager at Luno Malaysia. “By adhering to strict compliance requirements, we aimed to provide our users with a transparent, secure, and credible platform.”

This emphasis on regulatory compliance ensured a safe trading environment and instilled confidence and credibility among local investors, further bolstering Malaysia’s position as a thriving hub for digital asset trading.

Supportive regulatory environment

Scarlett pointed out that Malaysia’s overall supportive regulatory environment significantly contributed to the country’s fintech and digital asset trading growth.

The government’s proactive approach to fostering a tech-friendly ecosystem and encouraging innovation in the financial sector attracted numerous fintech companies, including those involved in digital assets.

“Initiatives such as regulatory sandboxes and fintech licenses were instrumental in promoting the growth of the fintech industry, including digital asset trading,” said Scarlett.

“With a large tech-savvy population, Malaysia became a fertile ground for fostering innovation and driving the adoption of digital assets,” she added.

Collaboration and partnerships

Luno understood the importance of collaboration and partnerships in expanding its trading platform and reaching more users in Malaysia.

By engaging with other brands in the tech and e-commerce space, Luno aimed to create unique propositions that attracted users and facilitated their entry into the world of digital assets.

“Collaboration was crucial to providing more exciting use cases for digital asset trading,” explained Scarlett. “Through partnerships with e-commerce platforms and fintech companies, we leveraged their expertise to offer seamless and integrated solutions for our users.”

Malaysia’s tech-savvy population

Malaysia’s tech-savvy population was a driving force behind the country’s adoption of digital assets and cryptocurrencies. Scarlett highlighted that Luno strategically positioned itself to cater to this demographic by offering an intuitive and user-friendly platform.

Recognising the dominance of mobile devices, Luno invested in developing robust and secure mobile applications, ensuring a seamless user experience for on-the-go trading.

“Being mobile-first was crucial in catering to the preferences of our tech-savvy users,” said Scarlett. “We continually updated our mobile applications to ensure that our users could access the platform with ease and convenience.”

Promoting education and awareness

Luno’s education-first approach was crucial in bridging the gap between traditional finance culture and the rapidly evolving digital assets landscape.

By providing comprehensive educational resources, workshops, and public awareness campaigns, Luno actively promoted awareness and fostered an understanding of digital assets among Malaysians.

“Our commitment to education was at the core of our strategy,” stated Scarlett. “We believed that by providing the right knowledge and information, we empowered our users to make informed decisions and responsibly engage in digital asset trading.”

Luno also emphasised the importance of investor education and protection, offering guidance and support through its customer success teams.

Regional opportunities

With its presence in multiple markets, including Indonesia and Australia, Luno gained valuable insights into navigating the complexities and regulations unique to each region.

This experience has positioned Luno with a deep understanding of regional preferences and best practices.

“Our regional presence allowed us to adapt and cater to the specific needs of each market,” explained Scarlett. “This enabled us to stay ahead of the curve and continuously improve our platform to meet the evolving demands of users.”

Malaysia’s geopolitical position and expansion

Malaysia’s geopolitical position within Southeast Asia presented unique opportunities for Luno to expand its trading platform. As Malaysia strengthened its position as a digital banking and e-commerce hub, Luno capitalised on these developments to attract more users to digital asset trading.

“As Malaysia’s digital banking and e-commerce landscape evolved, we saw immense potential to introduce users to the world of digital assets,” said Scarlett. “The increasing adoption of digital transactions created a fertile ground for expanding our user base and driving the growth of the digital asset trading ecosystem.”

Navigating the intersection of traditional finance culture and digital assets requires a delicate balance. Scarlett emphasised that close collaboration with regulators was essential to ensure compliance, build trust, and foster innovation. Luno actively engaged with regulatory authorities and industry experts, contributing to developing appropriate regulations that balanced innovation, consumer protection, and ecosystem stability.

Luno’s 10th-anniversary panel discussion

Recently, in a panel discussion commemorating Luno’s 10th anniversary, key figures in the digital assets sphere, Chan Zhong Yang, Head of Research at CoinGecko, and Liew Ooi Hann, founder and CEO of Halogen Capital, shared valuable insights into the state of digital asset regulation in Malaysia and offered advice for those embarking on their investment journeys.

Zhong Yang emphasised the significance of regulations for mainstream crypto adoption, eliminating bad actors and building user trust. He also pointed out the need for industry stakeholders to work together, ensuring that regulations keep pace with technological innovations.

Liew Ooi Hann, on the other hand, commended Malaysian policymakers and regulators for their cautious yet forward-thinking approach to digital asset governance.

He expressed enthusiasm for the transformative potential of blockchain integration and AI deployment, remarking, “We’re working closely with regulators and partners like Luno to enable Malaysia’s first licensed digital asset fund management company, expanding accessibility to innovative crypto investment products.”

Luno’s success in drawing users to digital assets and cryptocurrencies is primarily attributed to its knack for tailoring offerings to meet the needs of a tech-savvy populace, coupled with a commitment to regularly rolling out updates and new features.

Malaysia is well-positioned to harness its potential as the world embraces the digital revolution. With Luno’s significant role, the country’s digital assets’ future is undeniably bright, promising exciting opportunities for investors.

Ready to explore the world of digital asset trading? Join Luno’s regulated platform today and experience the secure and user-friendly ecosystem.