Kenanga Investment Berhad, one of Malaysia’s largest financial firms, is moving into the cryptocurrency industry with new investments.

Kinanga entered into a conditional agreement to buy 19% of the shares on the licensed cryptocurrency exchange, according to an official post on February 8th. The investment was made through the wholly owned Kenanga Private Equity division, Private Equity.

Under the agreement, Kenanga will invest in Tokenize Technology, the operator of the local Tokenize Xchange cryptocurrency. The platform offers trading services for major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), and it is one of three licensed digital asset exchanges regulated by the Securities Commission of Malaysia. According to Kenangi, Tokenize Xchange is the second largest digital asset exchange in Malaysia by market share.

“We have created a digital ecosystem to offer our customers a wide range of financial products and services, including digital assets,” said Datuk Chai Wai Leong, CEO of Kenanga Investment Berhad.

“Our interest in digital assets goes beyond Bitcoin and other commonly traded cryptocurrencies. We believe that the technology behind digital assets is very strong and that digital assets are inevitable in the future.

A spokesman for Kenanga Investment Bank Berhad declined to comment further on the investment.

Kenanga is one of the largest financial services firms in Malaysia and is said to have the largest independent investment bank in Malaysia in terms of stock trading and volume. The company is a well-known partner to cryptocurrency-focused Japanese retail giant Rakuten and offers a shared online stock trading platform Rakuten Trade in Malaysia.

At the end of 2020, Malaysia adopted new guidelines for digital assets from the Malaysian Securities Commission. The rules target digital asset managers and primary exchanges to promote “responsible innovation of digital assets,” as well as manage potential risks and protect the interests of issuers and investors.

Source: CoinTelegraph

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