SHAH ALAM – Cryptocurrency is gaining momentum among Malaysians, but financial experts stress that it can only be considered safe when investors fully understand its risks, volatility and regulatory boundaries.
Cryptocurrency continues to attract Malaysian investors seeking digital alternatives to traditional financial systems, driven by blockchain technology that enables transactions without banks or intermediaries.
Popular currencies such as Bitcoin, Ethereum and Solana remain among the top choices due to their high return potential, though they also carry the possibility of abrupt losses from extreme price fluctuations.
As the global cryptocurrency market operates without a central governing authority, its decentralised nature means no independent body regulates it entirely at the international level.
Locally, more Malaysians, particularly young individuals and online traders, are venturing into digital assets as part of portfolio diversification efforts.
To ensure the sector operates legally, the Securities Commission Malaysia (SC) oversees digital asset activities through licensed operators under three categories: Digital Asset Exchange (DAX), Initial Exchange Offering (IEO) and Digital Asset Custodian (DAC).
Professor Dr Amirul Afif Muhamat from Universiti Teknologi Mara (UiTM) Puncak Alam said the safety of cryptocurrency investment hinges on the individual’s level of knowledge and discipline.
“In the Malaysian context, cryptocurrency is classified as a legitimate digital investment asset and recognised by the SC. In fact, several cryptocurrencies are categorised as Syariah-compliant such as Bitcoin, Ethereum and Ripple.
“Crypto can be considered safe if investors trade on platforms licensed under the SC, understand the risk of sudden price volatility in the market, and do not engage in excessive speculative activities,” he said.
He stressed the need for investors to understand the risks associated with rapid price movements and highlighted cybersecurity threats such as phishing, despite blockchain's secure reputation.
From a broader perspective, he said digital assets offer strong long-term potential and transparency, as all transactions are recorded on blockchain networks accessible to the public.
However, he revealed that gold remains a more stable inflation-proof investment, while cryptocurrencies can fluctuate by 20 to 30 per cent within days.
Universiti Putra Malaysia (UPM) Senior Lecturer Dr Taha Mohd Omar added that cryptocurrency is not suitable for all investors but can serve as a complementary asset.
“Regulation in Malaysia is becoming more mature, but the responsibility to understand the risk lies fully with the investor.
“For new investors, crypto should be a small part of a healthy portfolio, particularly as exposure to future technology,” he said.