Malaysia’s largest financial institution decides to invest in the cryptocurrency sector


[Blockchain Today Reporter Kim So-yeon] Kenanga Investment Bank, a leading Malaysian financial service company, has decided to invest in the cryptocurrency sector.

On the 8th (local time), Kenanga Investment Bank officially agreed to acquire a 19% stake in the official cryptocurrency exchange through a conditional contract. Cryptocurrency exchange investments were made through Kenanga Private Equity, a wholly-owned private equity fund of Kenanga.

According to the agreement, Kenanga has decided to invest in Tokenize Technology, a Malaysian cryptocurrency exchange operator of Tokenize Xchange. Tokenize Technology provides major cryptocurrency trading services, including Bitcoin and Ethereum, and is one of the three cryptocurrency exchanges recognized by the Securities Commission Malaysia. Tokenize Technology is Malaysia’s second largest cryptocurrency exchange in terms of market share.

Datuk Chay Wai Leong, managing director of Kenanga Investment Bank, said, “Kenanga Investment Bank has built a digital ecosystem to provide consumers with a variety of financial products and services, including digital assets.” Datuk is a kind of title given to nobles, such as Baron and Count.

“Kenanga’s interest is not limited to Bitcoin or major cryptocurrencies,” he said. “We believe that the technology that forms the basis of digital assets is very powerful, and we believe that the emergence of digital assets in the future will surely come true.”

But a spokesman for Kenanga Investment Bank declined to answer questions about how the investment will be done specifically.

Kenanga Investment Bank is one of the largest financial services companies in Malaysia, and the largest independent investment bank in Malaysia in terms of stock trading volume. Kenanga has partnered with Rakuten in Japan, and has also launched Rakuten Trade, an online stock trading platform, in Malaysia.

At the end of 2020, the Malaysian Securities and Exchange Commission adopted a new digital asset-related guideline. It is reported that the aim of the guidelines is to encourage’innovation in the field of digital assets’, protect digital asset issuers and investors from risk, and protect their interests.