KUALA LUMPUR (March 27): The average daily transaction value of the local digital asset market fell 55.05% to RM25.75 million in 2022, from RM57.29 million in 2021, according to the Securities Commission Malaysia (SC)’s Annual Report 2022 revealed on Monday (March 27).
Despite the drop in the average daily transaction value, more new accounts were created. Over 128,000 accounts were created in 2022, which added 17% more to the total since the end of 2021.
Currently, there are four recognised market operators of digital asset exchanges or so-called RMO-DAX operators registered with the SC.
Recognising the strong appetite to operate new DAXs in Malaysia, the SC said it had opened the application for RMO-DAX registration, and enabled a new digital broker business model to operate on the RMO-DAX. This will facilitate the introduction of platforms with different value propositions.
“Allowing more players to enter the market increases capital market vibrancy by widening the number of regulated exchange platforms for investors to invest in,” the SC added.
Meanwhile, the digital investment management segment has continued to expand its capital market offerings, with total assets under management of more than RM1.39 billion as at end-2022.
Digital brokers, it also noted, have enjoyed a dominant presence among retail investors using online brokerage accounts, particularly among millennial investors who comprise the majority (72%) of the clientele base.
“The increased retail interest in the equity market peaked [at 33%] in 2022 during this economic recovery comparatively to 2021, with digital brokers gaining a retail market share of 4%, with the total number of accounts having risen by more than 10% to approximately 276,000 in 2022 (2021: approximately 251,000),” the report showed.