Hata received a conditional approval to operate a “digital asset exchange” with a “digital broker” license. A new regulated cryptocurrency player will soon enter Malaysia. Hata has been given accreditation as a Recognized Market Operator (RMO) by the Securities Commission of Malaysia, putting it in a position to start providing services in 6–9 months.
According to the Securities Commission’s website Hata will become the first authorized digital broker and the fifth authorized exchange in Malaysia, enabling it to display orders from other platforms. The startup also has a license from the Labuan International Finance Center as a money broker.
Co-founder David Low said:
Hata aims to make digital asset investing easier for institutional investors, businesses, and high-net-worth individuals in Malaysia.”
The permission comes as authorities repress illegal cryptocurrency businesses in the nation. Before shutting its Malaysian operations this year, authorities ordered Binance to stop providing local services in 2020. Later, Binance purchased a stake in MX Global, a licensed exchange in the area.
Rival exchange Huobi Global was also told to shutter in Malaysia in May for lacking RMO status. Partnerships, like the one between the Chinese Ant Group and Kenanga Investment Bank for a cryptocurrency app, are allowing for the emergence of authorized alternatives.
Analysts predict that Hata’s regulatory approval will give Malaysian institutions and investors a new compliant crypto gateway. However, reputable players like Luno present fierce challenge.
Malaysia will soon have a new regulated cryptocurrency participant after startup Hata was granted permission to build a digital asset exchange and brokerage. Hata is now able to provide services in 6–9 months thanks to the Securities Commission Malaysia’s approval of it as a Recognized Market Operator (RMO).
In order to display orders from other platforms, Hata will become the first authorized digital broker and the fifth approved exchange in Malaysia. A license from the Labuan International Finance Center to operate as a money broker is also held by the startup.
For corporations, high-net-worth individuals, and institutional investors in Malaysia, Hata intends to “make digital asset investing easier,” according to co-founder David Low. Prior to this, Low was in charge of the biggest exchange in the country’s 2019 launch, Luno.
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