In light of seemingly daily incidents regarding stolen keys and lost funds, especially within the unregulated digital asset space, it should not have been surprising for the regulators to take a much deeper dive into understanding the root causes of the problems. However, it would have been hard to simply adopt a blanket approach by putting a ban on the unfamiliarities and consequently never allowing innovation to naturally occur within the financial system, the SC took a systematic approach to learning.
We are pleased to share that we have received the Conditional Approval letter from the SC in becoming a registered Digital Asset Custodian! It took us two years to get to where we are, but we were able to address their concerns and challenges surrounding digital assets due to the fact that we’ve built the infrastructure ourselves and understand the technology behind it.
We must remind ourselves that the purpose of a financial market regulator such as the
Securities Commission is to protect investors while promoting investments in the capital market. It is under this premise that we can only commend the Securities Commission of Malaysia (SC) for being able to look at digital assets from a holistic perspective whilst evaluating the necessary infrastructure needed to ensure market stability and most importantly, investor protection.
Appointing a qualified custodian must be considered when conducting your own risk assessment. How much of a security risk could you bear with the amount you are holding? If you own digital assets, how comfortable are you in managing it on your own without having to worry that you might lose it? If you do outsource the custody, what sort of security measures are adopted by your appointed custodian – how much can you trust them?
These are the ongoing matters that you should continuously consider, even when you think you have appointed a well established custodial service provider. We aim to address these concerns in the following posts, so do follow us on LinkedIn to stay safe!
