Things are going smoothly for Fusang, situated in the Labuan region of Malaysia. Labuan, established in 1990, is being pitched as Malaysia’s Hong Kong. This mid-shore jurisdiction is located inside the nation but is free from its regulations and taxes.
Labuan was relatively unknown until Fusang placed it on the map with its digital equity and bond offerings. “Paper shares now, digital shares tomorrow,” says CEO Henry Chong, noting that this isn’t a new asset class that requires a new set of laws.
Because there are already securities laws in place, there is already clarity. Chong believes that there is a lot of certainty in the market around digital assets. Those who argue differently are upset about having to obey the rules.
Malaysia Poised To Become A Crypto Destination
Chong believes that jurisdictions will become more competitive and that Malaysia has a solid case to become the next crypto destination.
CoinGecko, a formidable rival to CoinMarketCap, was formed in Malaysia and is still based there, but with a presence in Singapore.
Malaysia continues to be tax-free on cryptocurrency capital gains, and its educated, English-speaking workforce is swiftly making a positive impact on stakeholders in the decentralized finance (DeFi) business.
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Malaysians Love Crypto
More than 1 million Malaysians, or 3.1% of the entire population, are thought to own cryptocurrency.
In early April 2020, crypto exchange Luno Malaysia reported a 33% increase in active users, while another crypto exchange Tokenize recorded a 40% average daily increase in transactions.
According to a poll done in early 2019, there is already a high degree of awareness of cryptocurrencies (84%), and almost half of Malaysians (47%) expressed interest in investing in cryptocurrencies in the future.
Singapore Planning Pro-Crypto Climate
Meanwhile, Singapore wants to become a crypto hub, and the government Is thinking about regulating the crypto space.
Singapore is one of the first countries to support cryptocurrencies. A crypto-hub typically requires three things: a robust economy, effective laws, and a bilingual workforce.
Singapore is competing with Malta, Switzerland, and El Salvador in attracting crypto firms. The work is challenging since, in many situations, the crypto business has flourished with minimal laws, and people are opposed to government attempts to impose restrictions.
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Binance, the world’s top digital asset exchange, is a top crypto platform already operational in Singapore.
Other Singapore government organizations collaborated to create the OpenCerts platform, which uses Ethereum smart contracts to develop and validate digital credentials for graduates of local educational institutions.
Singapore also provides other benefits as an internationally recognized and well-regarded jurisdiction with favorable tax rules.
In contrast, Hong Kong takes a fragmented approach that frequently feels like a square peg in a round hole despite everyone’s best efforts.
Featured image from CoinDesk, chart from TradingView.com
Source: https://bitcoinist.com/malaysia-may-be-asias-next-crypto-hub/