Luno Malaysia hopes for budget announcements on policies and measures that will continue to see the nation remain competitive in this fast-rising digital landscape.
It’s Country Manager Aaron Tang said we hope Budget 2023 will see a focused proposal of strategies that are aimed to provide a a safe and secure digital assets investment environment for all, which is what Luno champions.
“We believe digital assets can complement and enhance existing financial systems and stimulate economic activity. With increased interest from retail investors in digital assets, the market will be best served by regulated digital asset platforms that create growth for the industry while protecting investors in Malaysia,” he said.
This would address any ambiguities in the market and allow Malaysians to invest in digital assets with confidence, paving the way for further market acceptance and expansion.
In efforts to be at the forefront of the industry, he hopes that there would be tax exemptions for trading of digital assets in Malaysia on regulated exchanges.
Tang said as a Recognised Market Operator under the Securities Commission Malaysia, Luno absorbs the current implementation of Sales and Service Tax (SST) of 6% on behalf of its customers.
“We hope that exemptions for the current SST and any future implementation of Government Service Tax (GST) would be considered to help ensure that Malaysia’s digital asset industry remains competitive in the Asia Pacific region. This would also encourage Malaysians to invest in digital assets through regulated platforms.
Providing such exemptions on taxes — as well as any future capital gains taxes on digital assets — would provide a significant incentive for investors to keep their investments within the regulated digital asset ecosystem.
Unregulated digital asset exchanges which operate primarily from overseas come with much heightened risks of scams and financial crime (among others), hence it is important to protect investors by incentivising them to invest on Malaysian-regulated platforms.
Tang also expects support be given for blockchain companies to scale.
“There is currently an absence of investment funds or agencies that focus on growing potential blockchain companies in Malaysia. We hope that the government considers setting up investment funds through existing agencies such as the Malaysia Co-investment Fund (MyCIF) or Malaysia Venture Capital Management (MAVCAP) with a sole mandate to invest in high potential blockchain companies in Malaysia,” he said.
This would also help Malaysia remain competitive in the region, elevate widespread awareness on the benefits of blockchain among Malaysians and increase foreign investment into Malaysia, added Tang.
