PETALING JAYA: US President Donald Trump’s recent announcement of a US Crypto Strategic Reserve comprising Bitcoin, Ethereum, XRP, Solana and Cardano has strengthened confidence in Malaysia’s crypto market.
Local crypto exchanges told SunBiz that Malaysian investors see this move as a significant endorsement of cryptocurrency’s legitimacy and future potential.
Hata co-founder and CEO David Low said Trump’s strategic reserve announcement marks a pivotal moment for the digital assets market, driving both short-term price movements and long-term growth potential.
“With supportive regulatory frameworks in place, Malaysians will be able to capitalise on these emerging opportunities in the digital asset space through licensed exchanges in Malaysia,” he said
Over the long term, Low anticipates the cryptocurrencies selected by Trump will experience substantial growth.
“Their recognition as legitimate assets for national reserves validates their utility and value and paves the way for broader institutional and mainstream adoption. This development is likely to spur greater interest and adoption of these digital assets at the local level as well, as investors and businesses increasingly view them as credible components of a diversified portfolio,” he said.
On the regulatory front, Low said the Securities Commission Malaysia has already taken proactive steps by approving these five digital assets for trading on licensed digital asset exchanges, such as Hata.
“This regulatory clarity provides a secure and compliant environment for investors to participate in the digital asset market.”
StashAway Malaysia country manager Wong Wai Ken said other countries may follow suit.
“El Salvador already holds 6,000 BTC, and Switzerland, which is considering a referendum, are likely frontrunners. Germany and Hong Kong may act to diversify reserves, while BRICS+ nations (Brazil, Russia, India, China, South Africa) could counter US influence.”
Luno general manager for Asia-Pacific Aaron Tang said Malaysians have viewed cryptocurrencies as a way to diversify their investment portfolios beyond conventional vehicles such as equities, bonds, real estate and precious metals.
“Based on our observations, Malaysian crypto investors are among the most savvy investors in the region. They tend to follow the market movements closely and invest accordingly,” he said.
Tang stressed the importance of understanding the inherent risks, stating that while cryptocurrencies offer high reward potential, they also come with higher risks.
He advises investors to weigh these factors carefully and not base decisions solely on US policies, as global macroeconomic factors also play significant roles.
On March 2, Trump announced the establishment of a Crypto Strategic Reserve, aiming to position the US as a leader in the digital assets industry. The announcement led to an immediate surge in cryptocurrency markets.
Bitcoin’s price jumped over 11%, reaching approximately US$94,000, while Ethereum saw a 13% increase to about US$2,500. XRP, Solana and Cardano experienced even more substantial gains, rising 33%, 25% and 60%, respectively.
US President Donald Trump’s announcement of a Crypto Strategic Reserve sparked an an immediate surge in cryptocurrency markets. – AFP filepic
