Hata Gains Approval as Digital Asset Operator in Malaysia

The Malaysia-based Hata has received in-principle approval from the Securities Commission Malaysia (SC) to register as a Recognized Market Operator (RMO) as a digital asset exchange and digital broker.

With this approval, Hata could initiate its services within six to nine months. Hata will become the fifth regulated digital asset exchange in Malaysia and the first legal entity to receive sanction as a digital broker, giving it the ability to display trade orders from other regulated exchanges.

In June, the Labuan Financial Services Authority issued Hata a money broker license, enabling it to exchange USD. The International Business and Financial Center in Kuala Lumpur is a designated economic zone.

David Low co-founded Hata in April after leaving Luno, by far Malaysia’s largest cryptocurrency exchange. Low supervised the 2019 debut of Luno as Malaysia’s first digital asset exchange.

Low stated in a statement that other cryptocurrency exchanges have attempted to penetrate the Malaysian market.

The Supreme Court ordered Binance to cease operations in the country by July 2020 in the absence of RMO status, but the exchange did not cease operations in the country until July 2021.

In March, Binance returned to Malaysia by acquiring a stake in RMO MX Global. In May, Huobi Global (now HTX) was ordered to cease operations in Malaysia for failing to register with SC.

Malaysians can also trade cryptocurrencies via an app provided by Kenanga Investment Bank Berhad.

In August 2022, the large private bank collaborated with China’s Ant Group to introduce a wallet and trading app.