Malaysia Cryptocurrency License – Introduction
Cryptocurrency is no longer a simple buzzword that is used to describe the vague notions of “digital revolution” or “new way of commerce.” Instead, it’s a legitimate economic system that functions outside the typical financial market. There is enough reason for any business to consider expanding beyond what the traditional market will give them: it does not make much sense from an economic standpoint to ignore the plentiful opportunities of the crypto economy. Just try to wrap your brain around what the blockchain can do for you and your business!
With more and more people involved in cryptocurrency trading, more money-making opportunities are created. We are not just talking about new jobs or business-wide revenue growth, we are talking about money-making opportunities that can turn developing countries into economically self-reliant big-money players within the emerging marketplace. One of such forward-thinking countries is Malaysia, so it’s fitting for us to discuss the ways your business can obtain a cryptocurrency trading license in Malaysia.
Background Information on Malaysian Economy
There are several important sectors which ensure the stability of the Malaysian economy, including:
- Manufacturing sector (Malaysian electronics is very popular)
The current economic situation in the country is very stable and is expected to get even stronger with the steady growth of the manufacturing, agricultural, retail, and tourism sectors. The country has seen its second-longest period of sustained growth! In fact, at the time of writing, the economy grew by a very impressive 16% in the second quarter of 2021.
The impact that the increased adoption of blockchain technology in general and the BTC specifically had on the economy of this country is very telling. The government has shown an incredible commitment to creating a regulated environment and working with the financial services industry to develop a robust regulatory structure to drive the growth of crypto investments and the crypto economy overall. The regulatory framework that has been put in place to ensure the effective implementation of cryptocurrencies and blockchain-based technologies is one of the best in the world. It serves to create a safe haven for investors who wish to keep their funds safe and secure.
Malaysia Cryptocurrency License: Main Requirements
- A legal entity in Malaysia.
- Office space rented or purchased in Malaysia.
- Local workers on the payroll.
- Capital stock.
- Prove of an absence of criminal record from all shareholders and founders.
- Compliance with AML guidelines.
A more detailed list of requirements for blockchain license Malaysia can be found on the official site of the Securities Commission Malaysia / Suruhanjaya Sekuriti Malaysia.
Key Benefits of Receiving a Crypto License in Malaysia
Of course, there are certain risks related to the deployment of any business, but some options have a plethora of benefits that are sure to offset the possible downsides. Many of the benefits of receiving a cryptocurrency trading license in Malaysian jurisdiction are listed below:
- Ability to earn money in a crypto-friendly jurisdiction with vast potential for growth;
- Ability to take full advantage of new laws and tax exemptions that are granted to companies with a valid Malaysia cryptocurrency license.
- Almost non-existent risk of the government deciding to tighten the screws on the ever-profitable Fintech sector.
- Historically, Malaysia was home to some of the most ambitious crypto projects. Because of that, projects with a valid license from this country are usually considered to be a cut above the rest by the global crypto community.
- Clear and straightforward process of obtaining the license.
- Less strict compliance framework.
- Despite housing some of the more extraordinary projects in the past, as of right now, the competition is rather thin for any and all Malaysian crypto exchanges.
Other Asian Jurisdictions to Consider
Depending on the long-term goals and budgetary limitations, your project might not be perfectly suited for a cryptocurrency trading license in Malaysia. There are several other jurisdictions in the same region that you should definitely consider before committing. The most lucrative jurisdictions for cryptos in Asia include the Philippines and Singapore.
The Philippines. Their digital economy is a-boomin’! The legal framework is similar to the one that you can find in Malaysia, but, for instance, their licensing framework is less stringent. You might want to have a proper discussion with a representative of a consulting firm in order to determine which option works best for you and what are the key differences between the jurisdictions.
As far as Singapore goes, people like to pretend that cryptocurrencies are still in their infancy in this country. In reality, the opposite is true: there are many foreign companies launching ambitious ICOs and making money thanks to their innovative ideas.
In the end of the day, a blockchain license Malaysia remains one of the best options for those that want to earn money in the crypto market, protect their funds, and minimize long-term risk. Various industry insiders and ICO experts swear by this jurisdiction for its profitability, regulation, and favorable tax structure.