Cryptocurrency trading in Malaysia has surged as the country endures an extended lockdown, costing its economy an estimated $550 million a day. Regulated cryptocurrency exchanges are reporting substantial growth in trading volumes and new users as people seek “a good store of value in difficult economic times.”
Interest in cryptocurrency has grown significantly in Malaysia amid the extended lockdown restricting travel and nonessential businesses. The country estimates that 2.4 billion ringgit ($553 million) are lost each day that businesses remain shut due to the coronavirus pandemic.
Despite the worldwide economic crisis, cryptocurrency trading in Malaysia has shown strong growth, according to two government-approved crypto exchanges. Luno, Malaysia’s first fully approved digital asset exchange, told The Malaysian Reserve publication that local trading volumes on its platform grew 33% over the past four weeks. Luno Malaysia manager Aaron Tang said the number of active users on his exchange hit a record high during that period.
The Luno manager explained that some investors are using cryptocurrencies, such as bitcoin, to diversify their portfolios, because they are worried that huge stimulus packages and the global economic crisis could lead to inflation. The second fully approved cryptocurrency exchange operator, Tokenize Technology, has also experienced an increase in user signups. CEO Hong Qi Yu told the news outlet that his platform is seeing an average daily trading volume increase of 30% to 40%.
“We are quite fresh but see that Malaysians are quite eager to sign up,” he was quoted as saying. However, he added that most people are still taking a wait-and-see approach when it comes to cryptocurrency investing, estimating that only 2% of Malaysia’s population of over 30 million has adequate cryptocurrency knowledge.