The announcement of a US Crypto Strategic Reserve by President Trump has bolstered confidence in Malaysia’s cryptocurrency market. Industry experts believe this move will enhance the legitimacy and growth potential of digital currencies. Local regulatory frameworks are supportive, facilitating investment opportunities. Furthermore, other countries may emulate this strategy as cryptocurrencies gain traction as credible assets.
The recent establishment of a US Crypto Strategic Reserve announced by President Donald Trump has positively influenced investor confidence in Malaysia’s cryptocurrency market. Local exchanges have reported that Malaysian investors view this action as a strong endorsement of the legitimacy and future potential of cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano.
David Low, co-founder and CEO of Hata, commented that this strategic move represents a crucial turning point for the digital assets market, enhancing both short-term price fluctuations and long-term growth prospects. He expressed optimism that with supportive regulatory frameworks, Malaysians will seize opportunities within the digital asset market through licensed exchanges.
Looking at the long-term scenario, Low anticipates substantial growth for the cryptocurrencies endorsed by Trump. He noted that their recognition as legitimate assets for national reserves would facilitate broader institutional acceptance, ultimately increasing local interest and adoption as investors consider them viable components of a diversified portfolio.
On the regulatory landscape, Low appreciated the proactive steps taken by the Securities Commission Malaysia, which has approved the trading of these digital assets on licensed exchanges like Hata. This move is significant for creating a secure and compliant environment for investors participating in the digital asset market.
Wong Wai Ken, country manager of StashAway Malaysia, highlighted that other nations might follow the US model. Notable examples include El Salvador’s substantial Bitcoin reserves and Switzerland’s potential referendum. He speculated that countries like Germany, Hong Kong, and BRICS+ nations might also seek to diversify their reserves in response to US influence.
Luno’s Asia-Pacific general manager, Aaron Tang, indicated that Malaysian investors are increasingly using cryptocurrencies for portfolio diversification beyond traditional asset classes. He characterized Malaysian crypto investors as astute and attentive to market dynamics, encouraging them to recognize both the high reward potential and the inherent risks of cryptocurrencies before making investment decisions.
Following Trump’s announcement on March 2, the cryptocurrency market experienced an immediate surge, with Bitcoin increasing by over 11% to around US$94,000, Ethereum climbing 13% to approximately US$2,500, and XRP, Solana, and Cardano seeing gains of 33%, 25%, and 60%, respectively. The announcement reiterated the United States’ intent to lead in the digital assets sector.
In conclusion, President Trump’s establishment of a Crypto Strategic Reserve has invigorated Malaysia’s cryptocurrency sector, fostering heightened investor confidence. With favorable regulatory frameworks and growing market interest, the potential for substantial growth in endorsed cryptocurrencies appears promising. Furthermore, as global trends emerge, Malaysia is well-positioned to embrace digital assets as credible investment options.
Original Source: thesun.my
