Malaysian digital asset firm Hata has received in-principle approval from the Securities Commission Malaysia (SC) to register as a Recognized Market Operator (RMO). This approval marks a pivotal step toward becoming a regulated digital asset exchange and digital broker.

Key Development: In-Principle Approval from SC

The Securities Commission Malaysia has given Hata the green light to register as a Recognized Market Operator (RMO) for both digital asset exchange and digital brokerage services. This in-principle approval positions Hata as a potential game-changer in the digital asset landscape.

Hata, co-founded by David Low, former executive at Luno, Malaysia’s leading crypto exchange, aims to cater to a diverse clientele. The focus is on providing seamless digital asset investment solutions for institutional investors, businesses, and high-net-worth individuals in Malaysia.

Upon launch, Hata will solidify its position as the fifth regulated digital asset exchange in Malaysia. Notably, it will also be the first legal entity to receive approval as a digital broker, enabling it to display trade orders from other regulated exchanges.

Money Broker License from Labuan Financial Services Authority

In a strategic move, Hata obtained a money broker license from the Labuan Financial Services Authority in June. This license empowers Hata to engage in USD exchanges, further enhancing its capabilities in the digital asset space. The Labuan International Business and Financial Centre, where Hata received this license, serves as a special economic zone.

Founder’s Vision and Navigating Regulatory Challenges

David Low, co-founder of Hata and former overseer of Luno’s debut as Malaysia’s first digital asset exchange, shared the company’s vision.

He stated,

“We plan to make digital asset investing easier for institutional investors, businesses, and high-net-worth individuals in Malaysia,”

The Malaysian crypto landscape has witnessed regulatory challenges for various exchanges. SC’s directive to Binance to cease operations in 2020, and Huobi Global’s closure in May for non-registration with SC, highlight the regulatory landscape’s intricacies.

Competition and Market Dynamics

While Hata emerges as a player in the Malaysian market, it faces competition from other platforms. Binance’s return to Malaysia in March through an investment in RMO MX Global, and Kenanga Investment Bank Berhad’s collaboration with China’s Ant Group in 2022, offering a crypto trading app, showcase the dynamic nature of the market.

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