One of Malaysia’s largest financial institutions, Kenanga Investment Bank Berhad, has acquired a 19% stake in the local cryptocurrency exchange Tokenize Xchange.
The exchange holds a license from the Securities Commission of Malaysia and ranks second by volume traded in the country.
The deal was completed with Tokenize Technology, the platform operator, through Kenanga Private Equity’s investment arm.
“Our interest in digital assets extends beyond Bitcoin and other cryptocurrencies. We hope that fundraising through tokenising businesses and assets will, in the future, become an important part of Malaysia’s capital markets,” said Datuk Chai Wai Leong, the managing director of Kenanga Investment Bank Berhad.
The company did not provide further details about the investment.
Kenanga owns Malaysia’s largest independent investment bank, is a partner of the Japanese retail giant Rakuten and runs the local online stock-trading platform Rakuten Trade.
Back in the second half of 2020, Malaysia updated its rules for ICO and IEOs. Startups are now permitted to issue tokens through venture capitalists and financial institutions without selling equity or using debt instruments.
The maximum amount to be raised via a crowd sale is capped at $24.5 million.
IEO platform organizers must register with the Securities Commission and conduct issuer due diligence.
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