Sunday, September 20

Tokenize Xchange fortifies security with BitGo global financial insurer

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Hong speaks at a conference. Tokenize Xchange is taking further stringent measures to guard the safety and security of its users by partnering with BitGo.

KUALA LUMPUR: Digital asset exchange (DAX) operator Tokenize Xchange, a fully approved exchange by Securities Commission Malaysia (SC), is taking further stringent measures to guard the safety and security of its users by partnering with BitGo.

“We continue to tirelessly strive in the area of security. In driving such efforts, we have strengthened our relationship with BitGo, the global leader in digital asset financial services, as our custodian.

“What this means is that all transactions via Tokenize Xchange will be insured and protected with a credible third party, covering up to USD100 million in value through a syndicate of insurers in Lloyd’s of London and the European Marketplace,” said Tokenize chief executive officer and chief technology officer Hong Qi Yu, in a statement.

BitGo is one of the largest and most established custodians for digital assets. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and institutional investors and spans more than 50 countries. It supports over 250 coins and tokens and processes over 20 per cent of all global on-chain Bitcoin transactions.

This initiative by Tokenize Xchange to further secure its exchanges is backed by growing confidence in cryptocurrency as trading around the world has increased.

That being said, concerns have also been raised with regulatory bodies in terms of various risks such as fraud and money laundering. In April this year, following an increase in the number of cryptocurrency complaints the regulator received, a warning was issued by SC to the public against investing in unauthorised digital asset exchange.

Hong added, “These are no doubt events to beware of and trading with a safe and secure platform, at which it is of paramount importance to trade on legitimate digital asset exchanges.

“With confidence building, we recently witnessed trading surges in Malaysia and Singapore with a regain in value stimulated by recovery packages being unveiled by central governments amid the Coronavirus pandemic.

“This leads on to our next step to apply for mandatory licensing under the Payment Service Act (PSA) in Singapore as we expand to both markets. We believe that regulation and compliance are keys to increasing consumer confidence in digital assets and that the PSA will bring much-needed security and adherence for digital assets in neighbouring Singapore.”

Tokenize Xchange, which is a Malaysia and Singapore based exchange, will now be using a combination of wallet set-ups and security features including both hot wallets and insured custody through BitGo Trust.

In addition, Tokenize utilises BitGo Prime for its recently launched Prime Lending. The service, which offers the borrowing and lending of cryptocurrency, adds additional liquidity to the Tokenize Xchange group of companies.