The cryptocurrency market has been anything but stable lately. From the collapse of the stablecoin TerraUSD in May to the broader selloff triggered by Federal Reserve rate hikes this month, risk assets across the board have taken a hit—wiping out fortunes overnight.
As one of Malaysia’s few Recognized Market Operators for Digital Asset Exchanges (RMO-DAX) approved by the Securities Commission (SC), MX Global Sdn Bhd doesn’t shy away from the reality: while the local crypto market is growing steadily, volatility is inevitable. To avoid costly mistakes, investors must do their homework and fully understand every decision they make.
In Malaysia, cryptocurrency trading must be conducted through SC-approved digital asset exchanges. According to the latest SC annual report, the number of digital asset accounts in the country surged from 190,000 in 2020 to 760,000 in 2021—an increase of over 300% in just one year. This rapid growth reflects rising interest, but also highlights the urgent need for investor education.
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The Importance of Regulated Platforms
Dato’ Faiz Lee, CEO of MX Global, emphasized in an email interview with China Press that while the local crypto market is on an upward trajectory, public skepticism remains high—many still view it as a scam.
“This is exactly where regulated digital asset exchanges must step in—to assure and educate users about the risks and fraudulent activities present in the market. As an SC-approved RMO-DAX, we offer our users security, transparency, and peace of mind.”
MX Global is one of only four such approved operators in Malaysia. The company adheres strictly to investor protection standards and received approval to operate cryptocurrency trading services in July 2021.
Globally, the crash sparked by stablecoins like TerraUSD has drawn increased regulatory scrutiny. With 18 years of experience in technology, startups, venture capital, and national development, Faiz Lee stresses that while profits are possible, so are losses—and responsibility ultimately lies with the individual investor.
“There’s a lot of hype in this space. Some will make money; many will lose it. That’s why we strongly advocate research and understanding. In this decentralized world, you are fully accountable for your own decisions.”
The TerraUSD Collapse: A Cautionary Tale
The global crypto community was shaken in May when TerraUSD (UST), the third-largest stablecoin, began a catastrophic plunge. Within 24 hours, over $200 billion in market value evaporated. UST and its sister token, Terra (LUNA), dropped nearly 98% and are now worth close to zero.
This event serves as a stark reminder: not all stablecoins are truly “stable,” and unchecked speculation can lead to systemic collapse.
Building a Sustainable Digital Economy in Malaysia
Under the MyDigital blueprint, Malaysia aims to become a high-income nation and a regional leader in the digital economy by 2030. However, Faiz Lee believes the biggest obstacle isn’t policy—it’s talent.
“Talent is the number one challenge for tech companies. With the right people, you can validate your ideas, secure funding, and scale rapidly.”
Execution is another major concern. While the government has identified key technologies under MyDigital and the Fourth Industrial Revolution (4IR) initiatives, Faiz notes that aside from 5G trials, little has been implemented on the ground.
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“We’ve had excellent plans in the 10th, 11th, and now 12th Malaysia Plans—clear roadmaps for digital transformation. But execution is where we fall short. Without follow-through, even the best strategies remain just paper.”
Meeting Market Demand Responsibly
It's no secret that many Malaysians bypass local platforms and trade via overseas exchanges—often due to limited options at home. While regulated operators like MX Global provide safety, they must also respond to real market demand to stay relevant.
Currently, MX Global offers trading in only two major cryptocurrencies: Bitcoin (BTC) and Ethereum (ETH). But due to growing interest in other tokens, the company is exploring the addition of Ripple (XRP), Bitcoin Cash (BCH), Litecoin (LTC), and others—pending regulatory approval.
“Our expansion plan is clear: more cryptocurrencies, more users, and more features. We’re committed to providing a secure, simple, and authentic crypto investment experience.”
Strategic Partnerships Driving Innovation
MX Global recently welcomed two major shareholders: Binance, the world’s largest crypto exchange by daily trading volume, and CUSCAPI (0051, Main Market Technology), a leading Malaysian digital business solutions provider.
Through Binance’s ecosystem, MX Global gains access to cutting-edge innovations such as yield farming, staking, and token launch mechanisms—all of which the company plans to adapt for Malaysia’s regulated environment.
“Binance leads in product innovation. We aim to localize these services so Malaysian users can benefit from them within a compliant framework.”
CUSCAPI brings deep expertise in digital transformation for small and medium enterprises (SMEs). This partnership is invaluable as MX Global seeks to help businesses adopt digital assets for investment and process automation.
Educating Investors and Expanding Access
Malaysia’s digital asset market is still in its infancy. Faiz Lee believes that more licensed exchanges entering the space will accelerate investor education and adoption.
“Retail investors have different needs from institutional players—and both differ from small businesses. We see strong potential to grow in the retail segment while also creating opportunities for institutions and enterprises.”
As adoption grows, so must awareness. The line between opportunity and risk is thin—and only informed investors can navigate it successfully.
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Frequently Asked Questions (FAQ)
Q: Is cryptocurrency trading legal in Malaysia?
A: Yes, but only through platforms approved by the Securities Commission Malaysia (SC). Trading via unregulated overseas exchanges carries significant legal and financial risks.
Q: What happened to TerraUSD and why does it matter?
A: TerraUSD (UST) was a so-called “algorithmic stablecoin” that lost its peg to the US dollar in May 2025, collapsing within days. It highlights the risks of unbacked or poorly designed digital assets—even those marketed as low-risk.
Q: How can I protect myself when investing in crypto?
A: Always use regulated exchanges, diversify your investments, avoid FOMO-driven decisions, and never invest more than you can afford to lose. Educate yourself on blockchain basics and token fundamentals.
Q: Why are partnerships like MX Global and Binance important?
A: They bring global innovation into a local, regulated framework. This allows Malaysian investors to access advanced features like staking and yield farming—safely and legally.
Q: What cryptocurrencies can I trade legally in Malaysia?
A: Currently, major platforms offer Bitcoin (BTC) and Ethereum (ETH). Others like XRP, LTC, and BCH may be added pending regulatory approval.
Q: How does talent shortage affect Malaysia’s digital economy?
A: Without skilled professionals in blockchain, cybersecurity, and fintech, even well-designed policies like MyDigital cannot be effectively implemented or scaled.
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