US President Trump’s creation of a Crypto Strategic Reserve has bolstered confidence in Malaysia’s crypto market, with local exchanges observing increased investor interest. Regulatory approvals offer a secure trading framework, encouraging potential long-term growth for selected cryptocurrencies. However, investors are cautioned about inherent risks and global economic influences.
The recent announcement by US President Donald Trump regarding the establishment of a US Crypto Strategic Reserve, which includes Bitcoin, Ethereum, XRP, Solana, and Cardano, has positively impacted Malaysia’s cryptocurrency sector. Malaysian local exchanges report that this development is seen as a robust endorsement of cryptocurrency’s legitimacy and its future prospects among investors.
David Low, co-founder and CEO of Hata, noted that Trump’s strategic reserve is a pivotal moment for the digital asset market, stimulating both immediate price changes and long-term growth opportunities. With supportive regulatory frameworks in place, he believes Malaysians can successfully engage with these emerging opportunities via licensed exchanges.
Long-term, Low anticipates growth for the cryptocurrencies selected by Trump. He stated that their recognition as legitimate assets for national reserves confirms their value and potential utility. This development could increase interest and adoption locally, as businesses and investors regard these digital assets as credible options for a diversified investment portfolio.
From a regulatory standpoint, Low indicated that the Securities Commission Malaysia has proactively approved these five digital assets for trading on regulated exchanges, ensuring a secure environment for investors to participate in the crypto market.
Wong Wai Ken, country manager of StashAway Malaysia, suggested that other countries are likely to follow suit in the future, noting that nations like El Salvador already hold significant BTC reserves, while Switzerland may consider a referendum to diversify its reserves.
Luno’s general manager for Asia-Pacific, Aaron Tang, remarked that Malaysian investors are increasingly looking to cryptocurrencies as alternatives to traditional investments such as equities and real estate.
Tang emphasized the necessity for investors to understand inherent risks since cryptocurrencies, while promising high returns, carry significant volatility. He advised against making investment decisions based solely on US policy shifts, stressing the influence of global macroeconomic factors.
On March 2, Trump’s announcement of a Crypto Strategic Reserve led to a noticeable surge in cryptocurrency markets. Bitcoin’s price rose by over 11% to around US$94,000, Ethereum increased by 13% to about US$2,500, and cryptocurrencies like XRP, Solana, and Cardano saw even more drastic price hikes, recording 33%, 25%, and 60% gains respectively.
US President Trump’s launch of a Crypto Strategic Reserve has invigorated Malaysia’s crypto sector, demonstrating significant potential for growth and legitimacy in the cryptocurrency market. Regulatory approval for major digital assets fosters a secure trading environment. Despite the opportunities, investors must remain cognizant of the associated risks and not overly rely on US developments as the sole drivers of their investment decisions.
Original Source: thesun.my
