2nd March 2022 - 3 min read
Cryptocurrency exchange MX Global announced that it has secured an equity investment from Binance, one of the world’s largest crypto exchanges. This is in addition to another investment from Cuscapi Berhad, a local digital business solutions provider, intended for Redeemable Convertible Preference Shares (RCPS) into MX Global.
The exact financial terms of both deals were undisclosed, but the chief executive officer of MX Global, Dato’ Fadzli Shah said that the investments will contribute to MX Global’s ambition to become the preferred liquidity platform for digital asset or cryptocurrency investors, and token issuers locally and internationally. Specifically, the proceeds will be used to build brand awareness, hire talent, and develop new features that abide by Malaysia’s regulatory framework, he said.
“The cooperation of Binance will not only support us in achieving this goal, but should also provide the most capital-efficient opportunity for us to align and compete with other global players in the industry. We will continue building a safe, easy, and real digital asset ecosystem for our customers,” said Dato’ Fadzli.
Dato’ Fadzli also added that the cooperation from Cuscapi Berhad will expand the potential services that MX Global can offer in the future, as well as allow it to “innovate and revolutionise the payment system in Malaysia”.
Meanwhile, the founder and chief executive officer of Binance, ChengPeng Zhao said that the company sees potential in Malaysia, given its respected and innovative crypto and blockchain community. “We believe that partnering with MX Global will be a springboard to new opportunities, both in Malaysia and the region as a whole, as well as across the entire crypto and blockchain ecosystem,” he said.
Binance previously had some presence in Malaysia as crypto investors were able to trade on the platform. However, it was eventually forced to cease its offerings after the Securities Commission of Malaysia (SC) decided to take enforcement actions against it for illegally operating a digital asset exchange (DAX) in Malaysia without registering as a recognised market operator (RMO).
Finally, the executive chairman of Cuscapi Berhad, Datuk Jayakumar Panner Selvam said that this “historic collaboration” between digital assets and payment systems may soon enable the use of cryptocurrency to conduct commerce. “With blockchain and smart contracts being increasingly incorporated into our lives, the potential for this will be massive,” he said.
MX Global is one of the four recognised RMOs that have been granted full approval by the SC to operate a DAX within Malaysia. The other RMOs include Luno, SINEGY Technologies, and Tokenize Technology.
(Sources: DealStreetAsia, PRNewsWire)
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