PETALING JAYA: AmBank will become the first conventional bank to offer banking services to a regulated cryptocurrency exchange in Malaysia.
The sixth-largest banking group by assets in Malaysia has been appointed as the primary banker for Luno, the country’s first cryptocurrency exchange to be approved by the Securities Commission (SC).
Funds from Luno’s customers will be maintained in an AmBank Trust Account as per SC requirements, coupled with a cash management solution that allows Luno customers easy access to trade on the exchange.
The London-headquartered Luno said in a statement yesterday that its customers are able to seamlessly top up their Luno wallet and withdraw funds through online banking or through the Luno mobile app.
“AmBank has invested in developing an infrastructure in accordance with regulatory requirements that allows for transaction monitoring and customised reconciliation that facilitates the seamless operations of the Luno exchange, ” it said.
According to AmBank Group chief executive officer Datuk Sulaiman Mohd Tahir, the bank’s association with Luno highlights its progressive journey in the digital and financial technology revolution to showcase its customised services and solutions.
AmBank Group wholesale banking managing director Raja Teh Maimunah Raja Abdul Aziz stated that cryptocurrency has become an attractive investment opportunity for those looking to diversify their risk portfolios.
“Coupled with the growth of mobile users in Malaysia, the market is ripe for the services of a trustworthy exchange such as Luno, for Malaysians to have access to the cryptocurrency market, ” she said.
Meanwhile, Luno general manager for SouthEast-Asia David Low said that the partnership between the exchange and AmBank will benefit many Malaysians looking to embrace new forms of financial transactions.
“Luno will continue to strengthen its processes and controls to ensure Malaysians navigate the cryptocurrency ecosystem in a safe and reliable way, complying with all regulatory requirements, ” added Low.
Established in 2013, Luno received approval from SC on Oct 14 to operate in Malaysia. The Luno app has an instant purchase option that allows customers to buy, sell and store two types of cryptocurrencies – Bitcoin and Ethereum.
In addition, Malaysian investors will also be able to trade Bitcoin and Ethereum in ringgit via Luno.