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Malaysian Financial Platform To Venture Into Crypto With Its Latest Investment

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The crypto industry managed to lure in many. A prominent financial firm in Malaysia is the latest to jump on the bandwagon. The price change of Bitcoin over the last two months along with the market cap of the industry hitting a whopping one trillion stood as a shimmering quotient for many. At the time of writing, Bitcoin was trading for a high of $47,969 with a 23.36% surge in the last 24-hours. The overall market cap of the crypto market was also at an all-time high of $1.37 billion.

Malaysia To Spruce Up Crypto Adoption

In a recent blog post, it was announced that the Kenanga Investment Bank Berhad had initiated a conditional agreement with a crypto exchange in the country through its entirely-owned private equity arm, Kenanga Private Equity Sdn Bhd. The agreement would allow the financial firm a 19% equity stake in the crypto exchange.

The Malaysian financial giant would reportedly pour its money into Tokenize Xchange’s Tokenize Technology, a crypto platform regulated by the Securities Commission of Malaysia. Tokenize Xchange is touted as the second-largest crypto exchange in the country and has been supporting an array of cryptocurrencies, the post suggested.

Speaking about the emergence of cryptocurrencies and digital assets in general, the Group Managing Director of Kenanga Investment Bank Berhad, Datuk Chay Wai Leong said,

“The emergence of digital assets including cryptocurrencies have been gaining acceptance globally in the last few years. While we are keen on crypto as an asset class, we are aware of the volatility and the proliferation of unregulated players in the market. We are therefore very pleased to be given the opportunity to invest in one of the three licensed digital asset exchanges in Malaysia.”

Furthermore, he pointed out that Kenanga’s interest wasn’t limited to commonly traded cryptocurrencies like Bitcoin. He suggested that digitalization and the emergence of digital assets were inevitable. With their latest partnership, Kenanga hopes to be at the forefront of this.

The CEO of Tokenize Malaysia, Hong Qi Yu, also addressed the same and said,

“The combined reach, expertise and resources is game-changing and will allow us to scale our presence in Malaysia. Together we will shape the digital asset landscape and build an exciting path forward for investors in the country.”

Huobi Global Launches Its Newest Platform Huobi Labuan In Malaysia

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The crypto platforms have been steering towards jumping into different markets. Exchanges like Huobi and Binance have been stepping into almost every country. Recently the Huobi Global revealed that it was entering into a new market. As the interest and demand for crypto rises, crypto platforms have been working on providing users with an array of services across the globe and Huobi seems to have just jumped on to that bandwagon.

Huobi Steers Towards Malaysia

Huobi Globals seems to be spreading its wings across the world. The platform set out to take over the Malaysian market with the launch of Huobi Labuan. The exchange recently acquired a thumbs up from the Malaysian regulators. The brokerage service license that Huobi garnered will allow it to present the citizens of Malaysia with spot and derivatives trading services. Huobi’s Malaysian wing would be employing an all-in-one solutions provider, Huobi Cloud.

Receiving a license from the financial regulators is a tough nut to crack, especially if one belongs to the crypto-verse. However, Huobi managed to garner a license in September 2020. Even though the platform, Huobi Labuan is starting off with a nine-month trial operation, it has listed a wide range of assets. At present Huobi hoards, Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH], Ethereum Classic [ETC], EOS as well as HT. The platform revealed that it would welcome more cryptocurrencies into the fold right after the trial period is over.

The press release further said,

“As an independent trading platform licensed under the Huobi brand in Malaysia, Huobi Labuan aims to provide safe and trusted digital transaction brokerage services to local users through the Huobi Cloud technology.”

Malaysian financial authorities have been working towards regulating the crypto market. The country has been probing into several crypto platforms. In October, the Malaysian Securities Commission had rolled out a framework that regulated digital assets.

Similar to Huobi, another prominent crypto exchange, Binance has been exploring the prospects of new markets. The exchange has dipped its toes in several markets across the globe.

Malaysians Still Unclear On Crypto Through Shariah Perspective, says Shariah Advisory Council

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After being associated to the Darknet for many years, cryptocurrencies have finally made their breakthrough on the positive side of several authorities. The globe has an array of diverse religions with their own set of rules. Even though cryptocurrencies have taken off in terms of popularity, some Islamic countries still fall back on the adoption of crypto. Malaysia is one of those lists, and a prominent member of the Shariah Advisory Council sheds light on the same.

Malaysian Authorities Bullish On Crypto

Recently, a Malaysian news portal reported that the Securities Commission Malaysia (SC) Shariah Advisory Council chairman, Dr. Modh Daud Bakar revealed his stance on cryptocurrency. Before indulging in certain ventures, people of the Islam religion need to make sure that it is compliant with the Shariah. The Shariah is a code that governs the lives of Muslims. With the world steering towards the adoption of cryptocurrencies, in July,  the Shariah Advisory Council permitted Muslims to engage in crypto-related activities on registered crypto exchanges. Despite this, Bakar believes that the people in Malaysia still require time to fully grasp crypto from the Shariah viewpoint.

Recently, speaking at the SCxSC Fintech Conference 2020, held virtually, Bakar said,

“It is a medium of exchange, and we cannot stop people to use commodities as medium of exchange. It is as good as buying an e-ticket or commodities in the market.”

He also added that since cryptocurrencies are not viewed as legal tender under the religious law, it can be rather considered a commodity. However, it shouldn’t be backed “ribawi items”.  Bakar pointed out that the adoption of crypto could pave the way to several “interesting areas” in the country. Through this, the crypto could be labeled as an investment asset that would further allow the citizens to trade, buy as well hold crypto assets.

The debate of crypto being accepted and compliant with Islamic laws is still underway. However, several suggest that since cryptocurrencies like Bitcoin is based on proof-of-work and not debt it is considered permissible. Despite this, only three crypto exchanges including Luno Malaysia, Tokenize Malaysia, and Sinegy Technologies are licensed to operate in the country.

Praising the prospects of cryptocurrencies, Bakar added,

“The potential of this currency is as great as it comes with a growing digital economy of the world.”

US Authorities Charge Seven International Hackers Over Cyber Crime Including “Crypto-Jacking”

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Hackers and scammers have begun to see the crypto industry as a valuable stage, as the number of crypto-related violations is clearly on the surge.  A recent bust by the United States has put a stop to an array of hacks.

Hackers Eye Crypto Mining Rewards

The United States Department of Justice recently shared an announcement highlighting charges on seven individuals for carrying out hacks on over 100 companies across the globe. The US officials suggested that the alleged criminals included two businessmen from Malaysia and five residents from China. The statement revealed that the hackers operated under the labels, “APT41,” “Barium,” “Winnti,” “Wicked Panda,” and “Wicked Spider.”

The hackers engaged in several illicit activities like theft of source code, software code signing certificates, customer account data, and valuable business information. Along with this, the alleged criminals went on to employ crypto-jacking schemes where they mined cryptocurrencies via victim computers. Over the years, the crypto mining industry has attracted a lot of interest from individuals, thanks to miner rewards. People stealing electricity or software to aid their mining process has caused a huge ruckus across the globe.

Speaking about the latest incident, the Deputy Attorney General, Jeffrey A. Rosen suggested that the officials were looking into disordering the interventions of the cybercriminals. He added,

“Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China.”

The statement further revealed that the hackers had targeted software development companies, video gaming platforms, computer manufacturers, nonprofit platforms, think-tanks, telecommunication firms along with governments as well as politicians. The hackers not only focused on the United States but also steered into Australia, South Korea, Taiwan, Thailand, Vietnam, Indonesia, Japan, Malaysia, Pakistan, Singapore, Brazil, Chile, Hong Kong, and India.

The five Chinese men charged by the US officials were identified as Tan Dailin, Jiang Lizhi, Qian Chuan, Fu Qiang, and Zhang Haoran.  The Malaysian businessmen were Ling Yang Ching and Wong Ong Hua. All the aforementioned individuals were aged between 32 to 46.

Bitcoin Trader Robbed of More Than $350,000 Gets Justice as Main Accused Gets Charged in Singapore

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Ever since the inception of the cryptocurrency industry, it has witnessed several cases of scams and fraudulent activities. Sometimes these events tend to go overboard in the physical world as well.

This week, a court in Singapore adjudged that the last member of a three-member gang who stole thousands of dollars from a Bitcoin trader was guilty. Jaromel Gee Ming Li was sentenced by the court to three years in jail as well as twelve strokes of the cane as part of his punishment. 

Ming Li and his cohort included Mohd Abdul Rahman Mohamad and Syed Mokhtar Syed Yusope and were involved in attacking a Bitcoin trader back in 2018. Abdul Rahman is yet to go on trial for his crimes while Syed Yusope has already pleaded guilty to robbery. According to sources, Abdul Rahman and Ming Li would act as third parties in a bid to lure cryptocurrency investors into their trap.

In these instances, buyers would approach them with a lot of money looking to make a massive profit by trading cryptocurrencies like Bitcoin. During the event in question, the three parties decided not to transfer the cryptocurrencies even if the buyer provides them with the capital. The victim, Pang Joon Hau had traveled from Malaysia to Singapore to conduct cryptocurrency trades where he fell prey to Ming Li’s scam.

Mr. Joon Hau had a total of $365,000 with him that he planned to convert to cryptocurrencies. When Ming Li found out about this plan, he quickly informed both Abdul Rahman and Mokhtar who arrived at the hotel at night to execute the plan. During a meeting between Mr. Pang and a Bitcoin broker, Mokhtar interfered and attacked Mr. Pang for his money. Both Abdul and Mokhtar made off with the money but their happiness was shortlived as Abdul was arrested just two days later.

Kin of the accused was also brought in to establish proof with Abdul Rahman’s ex-wife also pleading guilty for receiving contraband from him. This turned out to be the final nail in the coffin as it started the snowball effect of arrests. Abdul’s ex-wife was also sentenced to 9 weeks in jail starting from mid-October. The final conclusion of the case will only be revealed at the end of the last arrest with many members of the cryptocurrency community wondering how harsh the penalty would be.

Bangladesh’s First Blockchain-Powered Remittance Service Is Here

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The British multinational banking and financial services company, Standard Chartered in partnership with Bangladesh’s largest mobile financial service provider, bKash, and Malaysian remittance provider Valyou announced the launch of the first-ever blockchain-driven cross-border remittance service in the country, facilitating instant transfers from Malaysia.

Naser Ezaz Bijoy, CEO of Standard Chartered Bank, Bangladesh reportedly asserted that remittance was an important driver of the country’s economy, contributing vital foreign currency to the national exchequer while supporting the livelihoods of millions of families. He further added,

“With our partners bKash, Valyou and Ant Group, we are delighted to be able to introduce a new-generation technological solution that will make the remittance experience simple and faster, by presenting the service available 24×7, including from the convenience of the remitters mobile phone. We hope this new service will benefit the end-users and contribute to the growing utilization of formal remittance channels.”

The official press release also revealed that the service will be leveraging blockchain technology from Ant Group Co., Ltd which happens to be the financial branch of the Chinese business conglomerate Alibaba Group.

According to the World Bank, Bangladesh was one of the largest recipients of remittance with almost $15.3 billion in 2018. It was the third-highest recipient of remittance in South Asia in 2018. Hence, with this development, Bangladeshi expatriates living in Malaysia can now send money from their digital wallets to a bKash account in Bangladesh through Standard Chartered Bank. The recipients can then cash out from over 200K nearby agent points across the country.

The report stated,

“Malaysia is an important part of this remittance ecosystem. Through this service, the Bangladeshi diaspora in Malaysia can send wage remittance via Valyou to a beneficiary in Bangladesh who is a bKash wallet user.”

Notably, Standard Chartered had previously executed Bangladesh’s first blockchain transaction by issuing a letter of credit for Viyellatex. The whole process was digitally by Contour, a global network of banks, corporates, and digital solutions, utilizing Corda blockchain.

Malaysian Authorities Bust Crypto Miners For Stealing $600K Worth Electricity

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The cryptocurrency ecosystem has gained tremendous popularity and value over the last decade. The cryptocurrency mining industry, specifically, miner rewards has caught the attention of many. The rewards that miners earn after mining every block seems to have opened doors for many crypto miners as they have been flooding the ecosystem regardless of the resources. In more recent updates, two crypto platforms were raided by Malaysian officials for stealing electricity to facilitate crypto mining operations.

Malaysia’s Big Crypto Mining Arrest

As reported by The Star, a total of 2.5 million Malaysian Ringgit [600,000 USD] worth of electricity was stolen over a period of three years in Iskandar Puteri. The raid was carried out by Malaysia’s Energy Commission along with Tenaga Nasional Berhad [TNB], a multinational electricity company along with Iskandar Puteri City Council.

TNB reportedly incurred a loss of 80,000 Malaysian Ringgit every month which was about 20,000 USD. Nazlin Alim Sadikhi, the Regional Director of the Energy Commission revealed that illegal wiring was installed to make sure that the electricity went through directly and not through the TNB meter. The Director further said,

“The first premises is believed to have been operating for three years while the second premises for two years. We found 100 mining machines in the first premises and another 48 in the second premises.”

Post the raid, the authorities concluded that the electricity bills for both the first and the second premises accounted for 30 Malaysian Ringgit and 60 Malaysian Ringgit a month, respectively, as opposed to the 80,000 Malaysian Ringgit.

It is not news that crypto mining consumes a lot of electricity. Reports even suggest that crypto mining accounts for 0.21% of the world’s electricity supply. If the accused are found guilty, they would be obligated to face a total of ten years in prison or a hefty penalty of $1.2 million, under Section 37 of the Electricity Supply Act of 1990.

After China, Malaysia seems to be a hotbed for electricity thefts, particularly for crypto mining. In 2020 alone, Malaysian authorities reportedly took down about 90 such operations. A total of 288 mining busts have taken place in Johor since 2018. TNB’s Team Engineer, Mohd Satari Mohamad added,

“In most cases, the owners of the premises were in cahoots with the cryptocurrency mining operators. They have similar operation methods where they have illegal wiring installed to the mining machines to illegally draw electricity supply.”

Second Malaysian State Reveals Plans To Develop Native Digital Bank

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The start of the new decade has brought with it some new changes to the world financial markets. After decades of adhering to a single banking and capital transfer system, regions are now experimenting with new technologies such as blockchain and virtual assets.

Malaysia remains one of the financial powerhouses in the South Asian region and recently made news when its states announced their decision to conduct their own tests with blockchain. The latest member of that group was the state of Johor, whose chief minister announced that the government was planning its own digital bank venture.

Chief Minister Datuk Haji Hasni Mohamad took to the public forum of Facebook to reveal that the state government was working with developers to establish its own digital bank. This announcement comes in the

wake of several countries across the globe integrating blockchain technology into its inner workings. According to the government official, a digital bank possesses several advantages that will be useful for the common citizen.

The Chief Minister added that a digital bank under the watchful eye of the government will bear fruits for the economy. Citizens will also have access to a more inclusive financial ecosystem where they will be able to trade with worldwide channels.

Mr Hasni Mohamad urged all the governments to seriously look into the matter and ensure that they do not miss the opportunity that lies in new-age technologies.

Johor becomes the second Malaysia state after Sarawak to initiate a bid for a digital banking license. Sarawak had initially said that they will apply for a license from the Federal Government.

Sarawak Chief Minister Datuk Patinggi Abang Johari Abang Openg had said:

“If possible, the state government would like to obtain the license as we already have our own e-wallet application, the Sarawak Pay. I also hope the Federal Government will consider granting us this license.”

Sarawak Pay, the state’s native application also has its sights on the Chinese as well as the European markets. Abang Johar was confident that there would soon come a day when citizens will be able to use their own currencies to conduct transactions in European nations.