Cryptocurrencies, News

SC: More than RM16b in cryptocurrencies and digital assets traded in Malaysia in September 2021

KUALA LUMPUR, Oct 26: In Malaysia, more than RM16 billion worth of digital assets and cryptocurrencies was traded between August 2020 to September 2021. This is due to an increase in the prices for blockchain-based assets.

Datuk Zaid Albar, chairman of SC, said that digital asset exchanges in Malaysia are flourishing with more than 300,000.

“Since its introduction in 2019, digital assets have exceeded a billion with a value exceeding RM16 billion as of September 2021,” Syed Zaid stated during his opening speech at the SCxSC Fintech Conference 2021.

Since early 2020, prices of digital assets have been rising with many cryptocurrencies hitting new highs.

CoinMarketCap reports that the total market capitalization of the digital asset sector peaked at US$2.65 trillion on Oct 21. However, it has since fallen to US$2.62 billion as of the time of writing. This is a 562% increase over the previous year.

The market capitalisation of the top two digital assets, Ethereum and Bitcoin, has seen triple-digit growth in the past year. They grew 381% and 9644% respectively to US$628,880 and US$4,223 respective.

Others, such as Binance Coin or Cardano, which are the third and fourth most valuable cryptocurrencies according to market capitalization, also saw four-digit increases during that same period of 1,469% versus 2,060%.

MSMEs continue to be supported by ECF and P2P funding platforms

Syed Zaid stated that financial technology (fintech), could help rebuild Malaysia’s economy after the Covid-19 pandemic. He also said that the SC would encourage greater adoption of digital capabilities for capital formation efficiency and investor participation.

He said that equity crowdfunding (ECF), and peer-to–peer (P2P), financing platforms have continued to support the funding needs of micro-, small- and medium-sized enterprises (MSMEs).

21 ECF and P2P platform registrations are currently held by the SC. These platforms have collectively raised over RM2.2 billion for nearly 4,000 MSMEs since their inception.

These alternative platforms helped MSMEs raise more than RM1.3billion in 2020, despite a decline in fundraising activity due to the movement order in the first quarter 2020.