The Global Stock Exchange (GSX) Group has announced its application for a license to launch a bespoke digital securities exchange in Malaysia has been conditionally approved. 

GSX Group intends to launch and administer a regional, regulated stock exchange to facilitate digital primary listings and secondary market trading access for equities, bonds, and investment funds, following the receiving of conditional approval from the Labuan Financial Services Authority. 

According to the group, which already has offices in Singapore and Hong Kong, the opening of a Malaysian exchange “represents a key milestone” in its “phased approach to transform Financial Markets Infrastructure (FMI) through innovations in blockchain”, and is part of its strategy to build its presence in Asia. 

Commenting on the announcement CEO of GSX Asia, Andrew Pal, said:

“The expansion of the GSX Group’s Asian presence comes at an opportune time, considering the heightened demand for sustainable and tradable financial products in the ASEAN (Association of Southeast Asian Nations) region, especially with regards to SME issuance. 

“We fundamentally want to address the current disequilibrium between buy-side demand, particularly by pension funds, for regulated ESG products and for the issuance of companies looking to raise capital, with sell-side facilitators, including exchanges and banks offering finance. With this in mind, we are very excited to create a reliable venue to broaden the accessibility of capital in the region.”

While COE, Labuan International Business and Financial Centre (Labuan IBFC), Farah Jaafar-Crossby, added:

“We welcome GSX Asia to Labuan IBFC’s ever growing digital fraternity comprising more than 44 license holders presently. As a digitally friendly jurisdiction, we welcome players who seek to be licensed in a well-regulated and supervised jurisdiction, offering a wide scope of solutions “housed” in a tax and currency neutral ecosystem. Additionally, I am looking forward to working with GSX Asia on initiatives related to financial inclusion in Asia.”

And, CEO of GSX Group, Nick Cowan, said:

“Today marks yet another important milestone on our journey to build a global network of digital securities exchanges. With our licence application conditionally approved by the Labuan FSA, this represents another firm seal of regulatory approval pertaining to our ongoing efforts to transform the global capital markets. 

“We look forward to working with the IBFC and contributing to the vibrant fintech sector that is rapidly evolving in Labuan. We can’t wait to begin servicing our pipeline of clients, while showcasing the many benefits a digital securities exchange can bring to the region.”

AYO.NEWS says:

Around the world we’re seeing a surge in institutional demand for digital asset exchange, trading and custody solutions, so it’s no wonder GSX Group is keen to get its new Malaysian exchange up and running. 

Earlier this week Malta-based crypto company Binance confirmed plans to launch a new UK-based platform this summer, in response to rising demand from institutional clients. 

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