The world of cryptocurrencies has grown exponentially in the past few years. From Bitcoin being the first cryptocurrency in 2009 to the present times where there are thousands of cryptocurrencies available, the public interest in these digital coins has also grown.
Malaysia has not remained untouched by the crypto phenomenon either. A portion of the population has expressed significant interest in cryptocurrencies which is evidenced by the number of exchanges that have set up shop in the country.
While Bank Negra Malaysia, the country’s central bank has stated that bitcoin is not legal tender in Malaysia. However, crypto trading is permitted in the country.
Cryptocurrency trading can be a complicated process, especially because there are so many exchanges to choose from. Here, we have compiled a detailed list of cryptocurrency exchanges in Malaysia with their features, pros and cons so that you can make an informed decision before going for cryptocurrency trading.
Top 7 Cryptocurrency Trading Platforms in Malaysia
Cryptocurrency exchanges in Malaysia are registered as Digital Asset Exchanges(DAXs) with the Securities Commission. There are four registered DAXs in the country though some unregistered exchanges also continue to operate in Malaysia.
Luno
Luno is a DAX registered with the Malaysian Securities Commission. It is a no-frills platform that does what it promises- make cryptocurrency trading accessible to all. It is a simple exchange with limited coins and features which makes it quite beginner-friendly.
You can instantly buy or sell crypto on Luno with fiat currency including the Malaysian Ringgit(MYR). It also offers the option of automating investments as per your schedule with its Repeat Buy feature.
For security, Luno keeps 95% of the crypto assets in multi-signature cold wallets. The backups of the hot wallet keys are also safely kept offline. The use of 2-factor authentication(2FA) is encouraged and all the passwords are hashed for additional security.
Features
✔️20+ trading pairs available
✔️Offers 9 cryptocurrencies for trading
✔️Has a website, Android and iOS app
✔️KYC and AML compliant
Pros and Cons
✅Licensed exchange ❌Has limited number of cryptocurrencies
✅Supports MYR ❌Very limited features available
✅Beginner-friendly
✅Direct bank deposit possible
Trading Fees
The trading fee on Luno depends on the trading volume. Users are divided into tiers based on the trading volume and the maker-taker fee is determined by the same.
Maker fee for Luno
Taker fee for Luno
Customer Reviews
Luno is a simple and easy-to-use platform
Luno’s customer service may be unresponsive
Why We Picked It
Luno is one of the few exchanges licensed by the Malaysian Securities Commission. It has to comply with the same AML and KYC regulations as regular banks. It makes crypto trading easy and accessible with its intuitive design.
Tokenize
Tokenize, founded in 2018, is one of the four cryptocurrency exchanges licensed by the Malaysian Securities Commission to operate as a DAX. It has an intuitive interface that focuses on ease of navigation and facilitates instant trading.
Besides crypto-to-crypto trades, Tokenize also supports fiat-crypto pairings and Initial Exchange Offerings(IEOs). It has a Premium and Platinum Membership program wherein you get extra benefits and exclusive perks by opting for the membership.
Following the industry standard, Tokenize encourages users to enable 2FA for security. It has the feature of IP whitelisting wherein only addresses included in the whitelist are allowed to log in.
Features
✔️Supports crypto-to-crypto and fiat-to-crypto trades
✔️50+ cryptocurrencies available
✔️KYC-compliant exchange
✔️Native token is TKX
Pros and Cons
✅Licensed platform ❌Not many advanced trading features
✅Easy to use design ❌Low number of cryptocurrencies available
✅Referral program
✅Workshops for new users
Trading Fees
For charging fees, Tokenize does not differentiate between makers and takers. It charges a flat 0.15% fee to normal users for crypto-crypto pairings. Premium and platinum users are charged a lower fee compared to normal users. You can also get a 30% discount by paying for transactions with TKX.
Tokenize trading fee
Customer Reviews
Tokenize has near instant fiat withdrawals
Tokenize customer service can be less than useful
Why We Picked It
Tokenize is a good exchange to begin your crypto journey. It is a regulated exchange with adequate security measures such as 2FA and IP whitelisting in place. It also makes efforts to educate new users about crypto trading.
Sinegy
Malaysia-based Sinegy started its journey in 2017. It is a licensed DAX specifically catering to the needs of crypto traders in Southeast Asia. You can fund your Sinegy account either by depositing crypto or the MYR via a bank transfer.
Sinegy has an Arbitration “Arb” Scanner which makes it easy to find and execute the right arbitrage opportunity. It is a KYC-compliant exchange and identity verification is mandatory before you start trading.
Sinegy only states that it keeps a majority of the user assets in cold storage but does not specify the percentage. Users are encouraged to switch on 2FA for security. It also encrypts passwords and other user information to ensure privacy.
Features
✔️Designed for traders in Southeast Asia
✔️KYC verification is mandatory
✔️Cold storage, 2FA and password encryption for security
Pros and Cons
✅Regulated DAX operator ❌Limited coins available
✅Arb Scanner for better arbitrage ❌Does not have mobile app
✅No minimum deposit required
Trading Fees
Sinegy charges a maker fee of 0.25% and a taker fee of 0.5% for trading on the platform.
Sinegy trading fees
Why We Picked It
Sinegy is a no-frills exchange that is a good option if you don’t want to do anything beyond buying and selling cryptocurrencies. You can directly buy crypto with MYR and find the right arbitrage opportunities with its Arb Scanner.
KuCoin
Seychelles-based cryptocurrency exchange KuCoin’s biggest strength is its crypto collection. It boasts an enormous collection of 700+ crypto coins for traders to choose from. A defining feature of KuCoin is that you can trade on it without KYC verification to a limited extent.
Along with spot trading, KuCoin also supports margin trading where you can leverage your positions. It also has trading bots that can automatically execute trades on your behalf.
KuCoin encrypts all the data in storage and transit for safety. For user account security, multi-factor authentication is used. There are also API access controls and functional area isolation for access security.
Features
✔️700+ available coins
✔️Supports spot and margin trading
✔️Multi-factor authentication and encryption for account safety
✔️Native token is KCS
Pros and Cons
✅Massive collection of crypto coins ❌Convoluted fee structure
✅Automate trades with trading bots ❌Not suitable for beginners
✅Low fees for trading
✅Enables crypto lending
Trading Fees
KuCoin has rather low fees at 0.1% or lower maker-taker charges. However, its structure for determining fees can be complicated due to its multiple classes and categories.
KuCoin fee schedule
Customer Reviews
KuCoin is a good exchange with low fees
KuCoin has poor customer service
Why We Picked It
KuCoin is a suitable exchange if you want access to a wide variety of coins and find a few gems in its vast collection. The low trading fees are an added advantage and the exchange also has some advanced trading features.
Kraken
One of the oldest cryptocurrency exchanges, Kraken was founded in 2011; just two years after the first cryptocurrency Bitcoin was launched. The exchange has grown a lot from its early days when it had only Bitcoin, Litecoin, and Euro trades. It now has 185+ cryptocurrencies and offers all its services in Malaysia.
The Kraken website is SSL encrypted for safe browsing and accounts are secured with 2FA. Even emails are encrypted for safe communication. The majority of the crypto assets are in cold storage under 24/7 surveillance.
Features
✔️Over 185 cryptocurrencies available
✔️Has two versions-Basic and Pro
✔️Dynamic fees for Instant Buy
Pros and Cons
✅Decent coin selection ❌Fees on the higher side for Basic
✅Exchange has high liquidity version
✅High leverage for margin trading ❌Has been hacked previously
✅Comprehensive Learn section
Trading Fees
For fees, Kraken Instant Buy has a dynamic system that depends on several factors such as market conditions and order size. Kraken Pro, however, follows the taker-maker model of determining fees.
Kraken Instant Buy fee
Kraken Pro fee
Customer Reviews
Kraken has a helpful customer support
Kraken’s verification process can be tedious
Why We Picked It
Kraken has been in the game for a long time and is a reliable exchange. While the fees may be higher than other exchanges, Kraken makes up for it with its high liquidity, leverage and invaluable educational resources.
Crypto.com
Singapore-based Crypto.com has been growing at a fast pace over the last few years. In 2022, it reached 50 million active users and shows no sign of slowing down despite the FTX setback. It is trying to build a whole crypto ecosystem with its mobile app, DeFi wallet, credit facilities and Visa card.
To protect user funds, Crypto.com keeps them in cold wallets. It has also integrated the Ledger Vault with the platform and uses Multi-Factor authentication and Hardware Security Modules for additional security. Its Proo-of-Reserves results are publicly available on its website for reserve status verification.
Features
✔️Crypto trading app
✔️250+ crypto coins available
✔️More than 30 cryptocurrencies for staking
✔️Native token is CRO
Pros and Cons
✅Satisfactory coin collection ❌Fees are high for non-CRO holders
✅Great staking opportunities ❌Unimpressive FAQ section
✅Native DeFi wallet
✅Lesser fee for CRO holders
Trading Fees
Crypto.com has a five-tiered structure based on the 30-day trading volume according to which fees are charged for trading. The general trend is that the higher the trading volume, the lower the fees.
Fees for Crypto.com
Customer Reviews
The Crypto.com app has good features
Withdrawals can be difficult on Crypto.com
Why We Picked It
Crypto.com is great if you want the convenience of trading cryptocurrency from anywhere. The app has good features and it has some lucrative APYs for the crypto staked on the platform.
Coinhako
Coinhako is a platform suitable for beginners due to its simple interface and limited functions. The number of cryptocurrencies available on it is lower than the other exchanges on this list but rest assured, Coinhako does carry almost all popular coins.
Besides token swapping, Coinhako also has a Superwallet that can support ERC-20 tokens and other blockchains as well. It is ISO 27001 and has mandatory 2FA for deposits and withdrawals for security purposes.
Features
✔️Over 60 cryptocurrencies available
✔️Has a native Superwallet
✔️2FA for security
Pros and Cons
✅Simple interface ❌Low number of cryptocurrencies available
✅Multiple payment options ❌High trading fees
✅Offers loyalty rewards
Trading Fees
Coinhako does not differentiate between makers and takers and charges a flat 0.6% for transactions on the platform.
Coinhako trading fees
Coinhako fees for stablecoins
Customer Reviews
Coinhako has a responsive customer support
Coinhako’s verification process can take a long time
Why We Picked It
Coinhako is a straightforward exchange that is a good option for people who have just started getting into cryptocurrency. It has an easy-to-use interface and no confusing advanced tools or services.
Top 6 Decentralized Exchanges in Malaysia
Decentralized Exchanges(DEXs) are crypto trading platforms where buyers and sellers directly interact with each other for trading. These exchanges don’t require any kind of registration or KYC verification and hence, facilitate private and anonymous trading.
UniSwap
Ethereum-based UniSwap has quickly become one of the best-known DEXs. This exchange does not have a central order book but a collection of smart contracts detailing different aspects such as how liquidity pools are to be created and how liquidity is to be provided. This is known as Automated Market Maker(AMM) system.
Your funds remain safe while using UniSwap because you do not have to transfer them to the exchange in the first place. Further, it is committed to addressing potential vulnerabilities in the system and smart contracts with the help of its Bug Bounty program.
Features
✔️Ethereum-based DEX
✔️Uses AMM protocol
✔️Native token is UNI
Pros and Cons
✅User retains custody of private keys ❌No fiat currency accepted
✅Facilitates ERC-20 token swaps ❌High Ethereum gas fee
✅Earn crypto with liquidity mining
✅Governance by the UniSwap
community
Trading Fees
For fees, UniSwap v3 has implemented a three-tiered structure. The fee charged generally depends on the stability of the traded pair.
UniSwap trading fee
Customer Reviews
UniSwap is a well-known DEX
UniSwap has no official customer support
Why We Picked It
UniSwap is a nice option if you want to do cryptocurrency trading via a DEX. You can access a plethora of ERC-20 tokens on it at a price proportional to the risk associated with your trading pair.
PancakeSwap
A “Swap” exchange, PancakeSwap’s structure is similar to UniSwap in that it facilitates token swaps and uses the AMM protocol. The big difference, however, is that PancakeSwap is built on Binance’s BNB Chain instead of Ethereum. This helps it avoid the common problem of high gas fees associated with Ethereum-based DApps.
PancakeSwap’s code is open-source for transparency and even has a Bug Bounty program to detect and address the vulnerabilities in its smart contracts at the earliest.
All the contracts are multisig and time-locked for added security. It has also received good ratings on the security audits conducted by firms like Snowmist and Certik.
Features
✔️Developed on the BNB Chain
✔️AMM-based DEX
✔️Native token is CAKE
✔️Syrup pool for CAKE staking
Pros and Cons
✅Facilitates BEP-20 token swaps ❌Limited non-BEP-20 tokens
✅Inventive product suite ❌Non-existent customer support
✅Near-instant trading possible
✅Non-custodial platform
Trading Fees
PancakeSwap has a very straightforward fee structure and it charges a flat 0.25% rate for transactions.
PancakeSwap trading fee
Customer Reviews
The CAKE pool is a great feature of PancakeSwap
PancakeSwap may have a problem of scams running on the platform
Why We Picked It
PancakeSwap is an innovative exchange with some interesting products that are bound to pique your curiosity. It has a simple fee structure and is free from the issues of expensive gas fees and network congestion.
dYdX
dYdX is mainly a derivatives exchange. Though it does have spot and margin trading, it is primarily meant for perpetuals trading. dYdX has differentiated itself from other exchanges by removing the fees for accounts with less than $100,000 trading volumes.
dYdX enables cross-margining and instantly executes trades that are confirmed on the blockchain within hours. It has fast withdrawals and StarkWare’s Layer 2 solution has helped it in increasing its security and privacy.
Features
✔️Focuses on perpetuals trading
✔️Native token is DYDX token
✔️Crypto lending and borrowing possible
Pros and Cons
✅Quick withdrawals ❌Limited trading pairs
✅Nearly zero trading fees ❌Not very beginner-friendly
✅Perpetuals trading has no
gas fee
Trading Fees
Accounts with trading volume above $100,000 are charged taker and maker fees. It ranges from 0.005% to 0.020% fee for makers and 0.025% to 0.050% fee for takers.
dYdX exchange fees
Why We Picked It
dYdX is a great exchange, especially for perpetuals trading, if you have some experience with DeFi projects. Low-volume trades are free on it and even high-volume trades are charged a nominal maker and taker fee.
Curve Finance
Curve Finance is a no-frills exchange that primarily provides liquidity for stablecoins or wrapped versions of crypto assets. It is also an Ethereum-based DEX using the AMM protocol for operations.
Curve Finance, however, can work on other chains such as Avalanche, Polygon, Arbitrum and Moonbeam as well.
Dealing mainly with stablecoins means that Curve Finance is not as volatile as some other exchanges and is a relatively stable platform. Users who hold its native token CRV can also participate in the governance of the platform.
Features
✔️Platform mainly for stablecoin swapping
✔️AMM-based exchange
✔️Programmable liquidity pools
Pros and Cons
✅Operates on several chains ❌Prior experience of crypto trading
✅Fees are on the lower side needed
✅User control over funds ❌Not mobile-compatible
and private keys
Trading Fees
The minimum fee on Curve Finance is 0.04% though the pool fees can go as high as 0.4%.
Fees for Curve Finance
Why We Picked It
Curve Finance is a very hands-off exchange that lets you do your own thing without any third-party interference. It is a stable, efficient and reliable exchange with low fees. It is a perfect exchange if you mainly want to trade in stablecoins.
Balancer
Balancer is also an Ethereum-based DEX though it sets itself apart by enabling multi-token pools on the platform. You can easily add as many as eight tokens in one liquidity pool. In return, you get BAL tokens as compensation.
Balancer has both public and private pools. In a public pool, anyone can provide liquidity for earning fees. But only the pool creator can change the pool’s parameters or deposit or withdraw assets in private pools.
Features
✔️Liquidity pools can be programmed
✔️Native token is BAL
✔️Has an automated portfolio manager
Pros and Cons
✅Gas fee is low ❌Barely has any learning material
✅Fast and easy withdrawals ❌Does not have a mobile app
✅Multiple tokens in one pool
Trading Fees
You can program the liquidity pools on Balancer and set the fees anywhere between 0.0001% to 10%.
Trading fee for Balancer
Why We Picked It
Balancer offers high interest rates for investors who have an appetite for high levels of risk. You can add many tokens in one pool and don’t have to worry about paying prohibitively expensive gas fees.
DODO
DODO, unlike other DEXs, does not rely on the AMM protocol. Instead, it has something known as Proactive Market Maker(PMM) model. This system helps it maintain more liquidity and stability on its platform as compared to AMM-based DEXs.
DODO has no minimum deposit requirements for liquidity providers and lets you create your trading pairs and earn rewards in the form of a part of the transaction fees.
Cross-chain trading is possible on DODO and you can also do crowdpooling for starting liquidity markets and distributing tokens. Further, you can take part in Initial DODO Offerings(IDOs) and get into the world of NFTs with the NFT Vault.
Features
✔️PMM-based exchange
✔️Native token is DODO coin
✔️Coins can be easily listed
Pros and Cons
✅Less slippage ❌Fiat currencies are not supported
✅Impermanent loss eliminated
✅Fund utilization is high
Trading Fees
The transaction fee on DODO is stated to be 0.3% per trade though it finally comes around to be a 0.6% transaction fee for every trade.
Trading fee for DODO
Why We Picked It
DODO is free from the limitations of AMM-based DEXs. It is quite easily navigable if you have experience with using DeFi apps. It also has some interesting features such as DODO Vending Machine and NFT Vault.
Is Malaysia Crypto Friendly?
The legal status of cryptocurrency in Malaysia is similar to many other nations around the world. They are not legal tender but are not considered illegal either.
Cryptocurrencies are considered securities for regulation purposes and are regulated by the Malaysian Securities Commission under Order 2019 of the Capital Markets and Services Act, 2007.
Further, the Securities Commission unveiled its revised guidelines in 2020. The new guidelines relate to the operations of Initial Exchange Offering(IEO) platforms, fundraising activities through digital token offerings and the custody of digital assets.
Cryptocurrency exchanges must be registered with the Securities Commission and comply with all its regulatory requirements before starting operations.
These exchanges are regulated under the Guidelines on Prevention of Money Laundering and Terrorism Financing for Capital Market Intermediaries 2014, Order 2019 and the Guidelines on Recognized Markets 2019.
There is no specific framework, however, for the taxation of digital businesses. But digital asset exchanges may still be required to pay corporate income tax. Similarly, businesses that earn income from digital asset trading may be subjected to income tax.
Malaysia’s central bank, Bank Negra Malaysia has explicitly stated that cryptocurrencies are not legal tender and advises the public to be aware of the risks associated with digital currencies.
This position is backed by the government as well and going by government statements in 2022, this stance is unlikely to change in the near future.
The Bottom Line
Residents of Malaysia have a plethora of options to choose from when it comes to cryptocurrency trading. From a broader choice between centralized and decentralized exchanges to finally selecting a specific exchange, there is a wide range of options.
The fact that the Malaysian Securities Commission registers and regulates cryptocurrency exchanges is reassuring.
However, it is still a good idea not to jump headfirst into cryptocurrency trading. Do thorough research and consult a qualified professional before you invest in cryptocurrencies.