The 3 SC Approved Places to Buy Bitcoin in Malaysia ( 2021 Update )
Day by day , cryptocurrencies such as Bitcoin and Ethereum are stealing the limelight from financial market news. Whether you heard of it from huge institutional acquisition such as Square’s $50 million BTC splurge or massive exchange hacks such as Kucoin’s 2020 breach , you might be interested on how you can get your hands in some of this digital gold as Forbes labels it.
The Legal Stuff
In 2014 , BNM has declared Bitcoin as being not recognized as legal tender in Malaysia. While you can’t settle your bank loans in Bitcoin , it is however completely legal to pay for your teh tarik if your friendly mamak accepts it. The Ministry of Finance also noted that it has no intention to ban cryptocurrencies on the basis of supporting innovation that will be beneficial to the public.
Cryptocurrency exchanges on the other hand have another aspect to be concerned about. The Securities Commission of Malaysia ( SC ) closely regulates Digital Asset Exchanges , and after much scrutiny only 3 exchanges have been permitted to continue operations.
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The 3 ( Approved ) Exchanges to Buy Bitcoin in Malaysia
1. Luno Malaysia
Luno is a global cryptocurrency exchange spread over 40 different countries and headquartered in London , UK. You can trade BTC , BCH , ETH , XRP and LTC on their exchange with the Malaysia Ringgit ( MYR ) as a medium of exchange.
In terms of user friendliness , Luno definitely stands out as one of the most attractive and minimalist exchange app to use , both on mobile and desktop. The app has a very modern feel with buttons and commonly used actions within reach. Luno offers the highest volume among the 3 exchanges of nearly MYR 400 000 for BTC/MYR at the time. The only common community complaint I notice was with relatively long deposit confirmation times , but that has been resolved with the use of FPX Instant Transfers.
Key Information on Luno Exchange
Features : Wallet , Exchange , Instant Buy/Sell , API
Withdrawal Fees : Depending on network traffic , free within Luno users
Receive Fees : Free
MYR Withdrawal Fees : MYR 0.10
Trading Fees : Maker 0.25% , Taker 0.50% (Discounts with your trading volume)
For an extended list of fees check out their FAQ page.
Luno also recently made headlines by introducing a new kind of BTC Savings wallet , which lets you earn passive income up to a targeted 4% interest rate per annum.
2. Sinegy Exchange
A newcomer to the list of regulated exchanges , Sinegy is based in Penang and has relaunched on the 1st of April 2020 following its SC approval. Trading is now open to 2 pairs of currencies BTC/MYR and ETH/MYR.
To sign up for an account , you must complete KYC to comply with global Anti Money Laundering regulations. In terms of the exchange itself , they boast a really clean trading interface , with light and dark modes to suit your preference. A real deal breaker however if you are a day trader is the lackluster volume , only 0.02 ETH of 24 hour volume which explains why there’s nearly a MYR 400 spread.
Key Information on Sinegy Exchange
Features : Exchange , Wallet
Withdrawal Fees : 0.2%
Receive Fees : Free
MYR Withdrawal Fees : MYR 0.10
Trading Fees : Maker -0.25% ( You are rewarded for providing liquidity ), Taker 0.50%
For an extended list of fees check out their fees page.
3. Tokenize Technologies
Based in Singapore . Tokenize was granted full approval from the SC to operate on the 1st of April as well. Available trading pairs on this exchange are BTC/MYR , ETH/MYR and XRP/MYR.
The exchange itself has a modern and clean feel to it , with built in charts from TradingView. 24 hour volume is acceptable at roughly MYR 250 000 for BTC.
Interestingly , Tokenize implements a circuit breaker mechanism that triggers at an increase or decline of more than 50% of an asset’s value within 24 hours. Trading is then halted for up to 4 hours , but all order books remain valid.
Key Information on Tokenize Exchange
Features : Exchange , Wallet
Withdrawal Fees : 0.1%
Receive Fees : Free
MYR Withdrawal Fees : MYR 0.00
Trading Fees : Maker 0.00% , Taker 0.80%
For an extended list of fees check out their fees page.
Tokenize also has their own exchange token , Tokenize Xchange ( TKX ) listed on CoinMarketCap and CoinGecko. It can be used to offset trading fees however it is unclear on their website as to how this works.
But Wait There’s More
In the spirit of transparency , you are actually free to use any exchange out there.
As discussed earlier , despite the SC formally legalizing only 3 exchanges , the Malaysian Communications and Multimedia Commission ( MCMC ) has not blocked any crypto exchanges from being accessed. While we certainly do not condone the act of going against government regulations , there is no issue with you using Binance , ByBit , or even DeFi protocols like Uniswap if you wanted to.
Which goes without saying , you are liable for your own hard earned money. Do your own research , and never invest more than you can afford to lose.
