KUALA LUMPUR: Global cryptocurrency company, Luno Malaysia has achieved a new milestone with over RM1 billion of digital assets under management (DAUM) since its establishment in Malaysia in 2019.
Luno Malaysia’s DAUM comprised four approved cryptocurrencies namely Bitcoin (62 per cent), Ethereum (23 per cent) Ripple (10 per cent) and Litecoin (5.0 per cent).
The Securities Commission-approved Luno has also surpassed half a million, or 588,994 verified users in Malaysia with an influx of new users in the latter parts of 2020, representing over 300 per cent quarter-on-quarter (QoQ) customer growth and RM3.97 billion in total transactions.
Indicating a positive trend of cryptocurrency demand in Malaysia, Luno Malaysia Country manager Aaron Tang said it is promising to see Malaysians getting involved with cryptocurrency.
“Interest in cryptocurrency has been on an upward trend in Malaysia with many investors looking to cryptocurrencies as an alternative store of value or a start to their investing journey.
“When we relaunched in Malaysia in 2019, our aim was not only to provide Malaysians with a safe and convenient platform to buy, sell, and hold cryptocurrencies but also to educate them about this exciting technology,” he said in a statement today.
Tang said the past twelve months has hastened the adoption of cryptocurrency globally.
“While a lot of the attention has been around institutional adoption, global retail involvement, including Malaysia, has been growing at a tremendous pace too,” he added.
Globally, Luno has reached the momentous milestone of seven million customers representing over 300 per cent year-on-year (YoY) growth in the number of app installs with over RM34 billion transacted.
Luno said its expansion was reflected bigger-picture market demand for cryptocurrencies globally, as the industry continues to prove its reputation as building a sustainable financial infrastructure.
The cryptocurrency industry has seen a momentous year of growth, heavily spurred on by the entrance of institutional investors adopting bitcoin due to its store of value properties.
The asset has become more attractive to investors amidst inflation concerns as a result of increased fiscal and monetary stimulus.
The 2020 spike bitcoin experienced was also accelerated by its growth in global adoption as the number of global cryptocurrency users surpassed 100 million in the third-quarter of 2020.
Since the acquisition by Digital Currency Group (DCG) in September of 2020, Luno has seen the number of active global users increase by 167 per cent, whilst the number of app installs has increased 119 per cent.
As of January 25, 2021, the average Luno user held over US$7,000 in their wallet, up 56 per cent from the December 30, 2020.
Luno was ranked in the top six cryptocurrency exchanges worldwide in the latest CryptoCompare Exchange Benchmark, while also receiving the top tier AA rating.
Luno said the beginning of 2021 marked the start of a period of exponential growth due to simplicity of its online and mobile platforms, offering education, bank-grade security and self-regulation.
Additionally, its proactive stance of working with governments, regulators and banks to safely increase access to cryptocurrencies globally.
Luno said the growth was partly attributed to the huge interest surrounding cryptocurrencies in 2021 with the likes of Tesla investing in Bitcoin, US Bank BNY Mellon setting up a Crypto Unit, and Mastercard accepting crypto payments.
Luno Southeast Asia general manager David Low said the pandemic has exacerbated the need for digital currencies.
“At Luno, our mission is not only to help educate people about cryptocurrencies and how to use them today, but in the long run leverage the power of this technology to upgrade the world to a better financial system.
“We want to make cryptocurrencies accessible in a secure and compliant way to everyone, regardless of who they are or where they are located,” he said.
Low said Luno expects to continue exponential growth this year on track to reaching its goal of one billion global customers by 2030.-NST