Binance, the world’s largest cryptocurrency exchange, has announced an undisclosed amount of equity investment in MX Global Sdn. Bhd, a Kuala Lumpur-based fintech company.
MX Global is setting up a cryptocurrency trading platform that will allow access to merchants, consumers, and traders to transact in cryptocurrencies in Malaysia.
The company has also received an investment for redeemable convertible preference shares (RCPS) from the Malaysian company, Cuscapi Berhad.
Set up in 1978, Cuscapi Berhad is a public-listed company on the Main Board of the Malaysian stock exchange and is recognised as a pioneer supplier in digital business solutions in Malaysia.
Cryptocurrency trading became regulated in Malaysia through the enactment of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.
The order states that all digital currency and digital tokens meeting the criteria stipulated in the law would be prescribed as securities for the purposes of securities law in Malaysia.
MX Global is one of four recognised markets operator-digital asset exchange (RMO-DAX) that have been granted full approval by the Securities Commission Malaysia in July 2021.
It complies with the standards and practices “to uphold investor protection in conducting safe and secure trading of cryptocurrencies” in the country, the company said.
MX Global offers solutions for users to store and trade cryptocurrencies “under compliant and safe cyber security environment” including a regulated local cryptocurrency exchange.
The new capital injections will allow MX Global to build brand awareness, hire more high-quality talent and develop new features within Malaysia's regulatory framework, Fadil Shah, CEO of MX Global said.
Shah added that the company aspired to be the preferred liquidity platform for digital assets or cryptocurrency investors and token issuers locally and internationally.
“The cooperation of Binance will not only support us in achieving this goal but should also provide the most capital-efficient opportunity for us to align and compete with other global players in the industry,” he said.
With this initial effort to support sustainable growth in the cryptocurrency market in Southeast Asia (SEA), Binance hopes to work with regional and local partners to drive further collaborations, Binance founder and CEO, Changpeng Zhao said.
“We believe that partnering with MX Global will be a springboard to new opportunities, both in Malaysia and the region as a whole as well as across the entire crypto and blockchain ecosystem”, Zhao said.
Speaking about the investment by Cuscapi Berhad, Shah said the cooperation “will not only expand the potential services that MX Global can offer in the future, but it will also allow the company to innovate and revolutionise the payment system in Malaysia”.
Cuscapi Berhad executive chairman, Jayakumar Panneer Selvam, said the collaboration between digital assets and payment systems will create integration and synergy that will bring together the high potential of the use of cryptocurrency to conduct commerce.
“With blockchain and smart contracts being increasingly incorporated into our lives, the potential for this will be massive," Jayakumar said.
He added that the investments from two major players, Binance and Cuscapi Berhad, will allow MX Global to venture into a much bigger clientele pool.
This will also no doubt propel MX Global to become the major player in the industry.
