Luno plans to add more digital asset offerings next year

This is due to the high number of requests from its customer base

by NUR HANANI AZMAN / Pic by TMR FILE PIX

LUNO Malaysia had garnered more than 600,000 customers at the end of last month, marking an increase of over 233% year-on-year (YoY) from around 180,000 customers recorded at the end of November 2020, indicating a strong consumer demand for cryptocurrencies in Malaysia.

As the largest digital asset exchange in Malaysia, Luno processed over RM12 billion worth of payments in 2021, a 4.3-time increase from the previous year.

Currently, Luno stores more than RM2 billion in value on behalf of its customers across five approved digital assets — bitcoin, ethereum, ripple, litecoin and bitcoin cash, according to Luno Malaysia country manager Aaron Tang.

He added that interest in digital assets among Malaysians continued to grow in 2021, with many investors looking to cryptocurrencies as an alternative store of value or a start to their investing journey.

“The increased public awareness of cryptocurrency has encouraged more people to explore cryptocurrency’s other use cases such as a payment system and purchasing unique digital assets such as non-fungible tokens.

“Hence, we remain optimistic that our customers can achieve their financial goals of growing and preserving their wealth through investing in digital assets,” he told reporters during the Luno Year-in Review and the 2022 Outlook yesterday.

Moving forward, Tang said Luno will further democratise access to the cryptocurrency market by localising the application and educational resources to Bahasa Malaysia and enhancing its financial literacy initiatives to reach a wider audience.

“We hope that further innovation within the industry, enhanced democratisation efforts from regulated digital asset exchanges, as well as continued governmental support for the cryptocurrency space will continue to promote a conducive environment where Malaysians can invest into digital assets efficiently and responsibly.

“The positive growth of the industry is a testament to the nation’s fast-growing digital economy and it will support the nation’s development by helping drive more jobs and in the long-term attract foreign investments in Malaysia,” he added.

The total number of Luno’s active customers in Malaysia has grown by 518% YoY from just over 60,000 in 2020 to 371,000 in 2021.

The majority of activities came from users aged between 30 and 39, ranging from diverse career backgrounds.

When it comes to use cases, 76% of users buy cryptocurrencies for investment purposes, 15% for trading, 6% for sending and receiving cryptocurrencies, 2% as a payment method and 1% for other purposes.

Male customers comprise the largest segment at 75%, whereas female participation accounts for 25%. Nevertheless, the growth of Luno’s female customer base has increased sevenfold from 2020.

This shows that female participation in the cryptocurrency space has been growing yearly, thus indicating a positive trend of cryptocurrency investment among female customers in Malaysia.

Meanwhile, Luno is also looking to expand its offerings in 2022 with the introduction of new cryptocurrencies or digital assets due to the high number of requests from its customer base.

“I can reassure you that we are working hard on obtaining approval for several digital assets to be launched next year. Once we have received the green light from the regulator, then we will make further announcements.

“By adding more coins, this will help to drive more users and we also hope to grow the ecosystem in a safe and responsible manner,” he added.

Commenting on when user will be able to use Luno as a payment method, Tang said the adoption is probably not going to happen so soon but maybe in a couple of years.