KUALA LUMPUR: CoKeeps has received the approval from the Securities Commission (SC) to offer custodial services for digital assets, making it Malaysia's first qualified digital asset custodian (DAC).
In a statement, CoKeeps said the approval signified the presence of a credible third-party service that facilitates the safeguarding of digital assets.
This indicates the regulator's recognition of the widespread adoption of digital assets among individuals and institutions, and that compliant solutions are needed to protect the market.
"After three years of hard work building a robust DAC solution with the guidance of the SC, we are honoured to be the first company approved to operate under the SC's guidelines on digital assets.
"The SC is at the forefront of global regulators in developing a methodical approach to regulating digital assets, and its guidelines provide a clear roadmap for the safe and responsible development of this asset class," said CoKeeps chief executive officer Suhanna Husein.
Suhanna added that the company is committed to working closely with the regulator to ensure that its DAC solution meets the highest regulatory standards,
The services offered by CoKeeps are based on its core proprietary technology - CoKeeps Wallet, an institutional-grade digital asset management tool utilising decentralised security and multi-party computation methodology that are able to remove single points of failure commonly found in storing crypto.
Its features include cold wallets, hot wallets with API access and smart contract solutions.
CoKeeps is engaging with other regulated entities in the capital market such as recognised market operators, including digital asset exchanges for digital currencies and initial exchange offerings for digital tokens.
"Furthermore, fund managers and various financial institutions are incorporating the digital asset class to broaden their offerings.
"This expansion necessitates ready-made solutions, such as ours, to ensure compliance," Suhanna added.
Suhanna said globally, there has not yet been a comprehensive solution that could address the risk of insider threats.
"Trust is either relied on a group of people managing funds whereby accountability is lacking or worse, trust on wallet providers that credentials are not compromised without user's knowledge," she said.