Malaysia’s cryptocurrency market is gearing up for a promising second half of 2025 (2H25), following a strong rebound in 1H25, according to Luno Asia Pacific General Manager Aaron Tang.
Tang shared that amid a resurgence of Bitcoin and altcoin activity globally, the Malaysian market has shown signs of maturing, buoyed by increasing institutional interest and a supportive regulatory landscape.
“Bitcoin reached a new all-time high of over US$120,000 in July, signalling renewed investor confidence after a volatile start to the year.
“It’s been an intriguing first half of the year in financial markets,” said Tang, pointing to geopolitical and macroeconomic shifts such as US President Trump’s pro-crypto policies, tariff tensions and expectations of lower interest rates as key drivers of crypto market performance.
Despite early headwinds in 2025, altcoin markets are now “seeing signs of life after a tepid first half”, Tang said to BusinessToday.
Malaysia’s Growing Institutional Interest
Locally, Tang emphasised the growing participation of Malaysian institutional investors, particularly family offices, in digital assets.
“We are seeing interest spark within the local institutional space, especially among family offices, which want to include crypto in their investment mix,” he said.
He added that this shift comes as Malaysians increasingly view cryptocurrencies as a means to diversify portfolios beyond traditional assets such as equities, bonds, real estate and precious metals. The classification of crypto as a security under Malaysian law has offered a level of regulatory certainty that supports this evolution.
Positioning Malaysia as a Digital Asset Hub
Tang pointed out that Malaysia is well-positioned to leverage its strengths in fintech and blockchain innovation as the country is already home to several influential players in the global crypto space, including CoinGecko and Etherscan.
“Further recognition of crypto beyond securities could strengthen Malaysia as a hub for financial innovation, attracting fintech startups, blockchain developers, and global investors,” Tang added. He also highlighted Prime Minister Datuk Seri Anwar Ibrahim’s commitment to positioning Malaysia as a regional leader in digital assets.
Bullish Indicators For 2H25
Tang revealed that the crypto outlook for 2H25 appears increasingly bullish.
“Global developments, such as the expected easing of US interest rates and the rapid rise of institutional investment vehicles like Bitcoin ETFs, are likely to serve as tailwinds for continued market growth.
“The approval and explosive growth of Bitcoin ETFs in the US, particularly BlackRock’s iShares Bitcoin Trust, which now ranks among the top revenue-generating ETFs, are bringing in billions in net inflows. Even traditional financial giants like JPMorgan are entering the space, with trademark filings for crypto platforms that could offer trading, payments and digital asset issuance.
“These developments globally reflect a maturing and increasingly accessible crypto market,” Tang said.
He emphasised that Malaysia has a real opportunity to benefit from this global momentum, provided that an innovative and supportive regulatory environment is established.
Tang highlighted that Luno commands 90% of the regulated market share in Malaysia.
“As for the number of crypto investors, Luno have over one million customers investing in the crypto market through our platform,” he shared.
Conclusion
With a solid performance in 1H25 and a convergence of global and local tailwinds, Tang emphasised that Malaysia’s cryptocurrency market stands on firm footing.
“If regulatory frameworks continue to evolve in tandem with market needs, the country could cement its place as a Southeast Asian hub for digital asset innovation and investment in the months ahead,” he said.
