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Cryptocurrency exchange Hata has become Malaysia's fifth licensed Digital Asset Exchange (DAX), with its conditional license from the Securities Commission (SC) Malaysia upgraded to a full license, the company announced.
Founded by former Luno APAC general manager David Low, Hata is also the first player in the Malaysian market to have received the Digital Broker approval from the SC, which allows Hata to refer its users to the cryptocurrency prices of other regulated exchanges and execute their trades by matching them with the exchange.
Malaysia's cryptocurrency regulations have been evolving, with the Securities Commission (SC) reopening license applications in November 2022. Hata is the first exchange to receive full approval since then, indicating a potential shift in the landscape. This comes at a time when Malaysia's crypto market is experiencing steady growth, with increasing interest from both retail and institutional investors.
Unlike many exchanges that hold user assets overseas, Hata emphasizes its deep Malaysian roots. Their technology and custody solutions are built locally, and user digital asset keys are held by a licensed entity under the SC, Hata said in the announcement.
Competitive Fees
Hata says it has offering the lowest fees among Malaysian digital asset exchanges, which it has achieved by offering a zero maker fee, meaning users providing liquidity to the market can buy and sell for free. Taker fees, charged to users removing liquidity, are also significantly lower than competitors, ranging between 0.4% and 0.1% based on trading volume. Additionally, Hata offers an Instant Buy/Sell option with a 1% service fee.
“With attractive fees and a platform that offers the most variety of cryptocurrencies, we hope to redefine the cryptocurrency landscape in Malaysia," Darien Ng, chief revenue officer of Hata, said.
Hata also offers additional features that cater to the Malaysian market, including instant deposits and withdrawals via bank transfers, a rarity among competitors. They boast unlimited deposit limits in Malaysian ringgit (MYR) and higher withdrawal limits compared to other exchanges. Additionally, Hata is the only exchange to support deposits via popular e-wallets GrabPay and Boost.
Whether they can dethrone established players like Luno remains to be seen, but their arrival undoubtedly injects fresh competition and potentially benefits users with lower fees and more options.
Neil Liew
