Building a sustainable financial infrastructure with cryptocurrencies

INTEREST in cryptocurrency has been on an upward trend in Malaysia with many investors looking to cryptocurrencies as an alternative store of value or a start to their investing journey. Also, the pandemic has exacerbated the need for digital currencies.

With the aim to not only to provide Malaysians with a safe and convenient platform to buy, sell, and hold cryptocurrencies but also to educate them about this exciting technology, Luno – the first Securities Commission-approved digital asset exchange in Malaysia – was relaunched in 2019.

Today, the company is managing more than RM1 bil of digital assets – a milestone achieved after less than two years after the relaunched.

Luno Malaysia’s digital assets under management comprises four approved cryptocurrencies — Bitcoin (BTC), 62%; Ethereum (ETH), 23%; Ripple (XRP), 10%; and Litecoin (LTC), 5%.

Meanwhile, Luno has surpassed half a million verified users (588,994) in Malaysia with an influx of new users in the latter parts of 2020 representing over 300% quarter-on-quarter (qoq) customer growth and RM3.97 bil in total transactions indicating a positive trend of cryptocurrency demand in Malaysia.

“The past twelve months has hastened the adoption of cryptocurrency globally,” Luno Malaysia country manager Aaron Tang said.

“While a lot of the attention has been around institutional adoption, global retail involvement, including Malaysia, has been growing at a tremendous pace too.”

At the same time, Luno has reached the momentous milestone of seven million customers globally, representing over 300% year-on-year (yoy) growth in the number of app installs with over RM34 bil transacted.

The expansion of Luno in a short span of time is telling of the bigger-picture market demand for cryptocurrencies globally, as the industry continues to prove its reputation as building a sustainable financial infrastructure.

In fact, in the last one year, the cryptocurrency industry has seen a momentous growth, heavily spurred on by the entrance of institutional investors adopting bitcoin due to its store of value properties.

This is despite that the global economy is facing inflation – as a result of increased fiscal and monetary stimulus – cryptocurrency has seen a momentous growth, heavily spurred on by has become more attractive to investors.

Furthermore, in 2020 the spike bitcoin experienced was also accelerated by its growth in global adoption as the number of global cryptocurrency users surpassed 100 million in 3Q 2020. – April 16, 2021

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