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It has been more than 1½ years since regulations were introduced in the local cryptocurrency landscape and several months since registered digital asset exchanges (DAXs) began operating. Yet, a considerable chunk of trading continues to occur outside the regulated cryptocurrency space, industry players estimate.Kelvyn Chuah, co-founder and managing director of Sinegy Marketplace (Sinegy), and Hong Qi Yu, founder of Tokenize Exchange (Tokenize), estimate that at least half of the total monthly cryptocurrency trading volume in Malaysia takes place outside regulated exchanges. Meanwhile, David Low, Luno’s general manager for Southeast Asia, says using a rough estimate based on website visits and posted trading volume in Malaysia, at least RM100 million worth of cryptocurrency is traded outside the regulated channel each month, which is more than half of total trades in the country. “This leaves some investors unprotected,” he says.
“The number is just a very conservative estimate, as unregulated exchanges that operate from countries outside Malaysia facilitate trading of many more cryptocurrencies than the four listed on our platform (bitcoin, ether, ripple and litecoin).
“These unregulated exchanges do not just operate in the spot market, but also offer derivatives and are involved in margin lending. These are the so-called ‘sexy’ …
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