KUALA LUMPUR: Digital asset exchange operator, Tokenize Xchange is taking stringent measures to guard the safety and security of its users.
As one of the only three fully recognised market operators to establish and operate digital asset exchanges in Malaysia by Securities Commission Malaysia, the company fortifies its security by offering insured transactions by digital asset trust and security company, BitGo.
Tokenize's chief executive officer and chief technology officer, Hong Qi Yu, said having BitGo as custodian is important to further protect their clients as digital currency and digital token trade rising.
"We continue to tirelessly strive in the area of security. In driving such efforts, we have strengthened our relationship with BitGo, the global leader in digital asset financial services, as our custodian.
"What this means is that all transactions via Tokenize Xchange will be insured and protected with a credible third party, covering up to US$100 million in value through a syndicate of insurers in Lloyd's of London and the European Marketplace," Hong explained.
This initiative by Tokenize Xchange to further secure its exchanges is backed by growing confidence in cryptocurrency as trading around the world has increased. The decision to choose BitGo was easy as it is one of the largest most established custodians for digital assets that has customer base including world's largest cryptocurrency exchanges and institutional investors and known in more than 50 countries, which supports over 250 coins and tokens and processes over 20 per cent of all global on-chain Bitcoin transactions.
Concerns have also been raised with regulatory bodies in terms of various risks involving fraud and money laundering. In April this year, following an increase in the number of cryptocurrency complaints, Securities Commission Malaysia issued a warning cautioning the public against investing with unauthorised digital asset exchange.
"These are no doubt events to beware of. It is important to trade with a safe and secure platform, at which it is of paramount importance to trade on legitimate digital asset exchanges. We recently witnessed trading surges in Malaysia and Singapore with a regain in value stimulated by recovery packages being unveiled by central governments amid the Coronavirus pandemic," said Hong.
As a Malaysia and Singapore-based digital asset exchange entity, Tokenize Xchange will also now be using a combination of wallet set-ups and added security features including both hot wallets and insured custody through BitGo Trust.
"This leads on to our next step to apply for mandatory licensing under the Payment Service Act (PSA) in Singapore as we expand to both markets. We believe that regulation and compliance are keys to increasing consumer confidence in digital assets and that the PSA will bring much-needed security and adherence for digital assets in neighbouring Singapore," said Hong.
In addition, Tokenize utilises BitGo Prime for its recently launched Prime Lending, a service which offers the borrowing and lending of cryptocurrency which add additional liquidity to the Tokenize Xchange group of companies.