Cryptocurrency trading has grown in popularity across Malaysia, with platforms like Tokenize Malaysia offering a gateway for users to enter the digital asset market. 

As a regulated exchange, Tokenize Malaysia ensures compliance with local legislation, making it a trusted choice for Malaysian residents. 

In this review, I’ll share my firsthand experience with Tokenize Malaysia, highlighting its strengths and areas for improvement. 

Account Setup and Verification Process

Setting up an account with Tokenize Malaysia is a straightforward process, but it requires adherence to regulatory compliance, particularly for Malaysian residents. 

Unlike its international counterpart, Tokenize Exchange, users residing in Malaysia must use Tokenize Malaysia to comply with local legislation.

Steps to Set Up an Account

1. Registration: Begin by signing up on the Tokenize Malaysia website with your email address.
2. Identity Verification: Complete the KYC (Know Your Customer) process by submitting personal identification documents such as your IC or passport, and proof of residence.
3. Deposit Funds: Once verified, you can deposit a minimum of RM100 via FPX (eGHL Pay) or bank transfer.

Key Compliance Requirements

Tokenize Malaysia ensures that only individuals who meet its legislative criteria can trade. 

This means you must use your own bank account for deposits and withdrawals. 

Any transactions made using another person’s account will be refunded, subject to an administrative fee of up to RM50, with refunds taking up to 14 business days.

My Experience

While the registration process is simple, I faced delays during the authentication stage. 

Verifying my documents took longer than expected, which was frustrating as it delayed my ability to start trading. 

Additionally, discovering the platform’s minimum trading quantities only after depositing RM100 was another inconvenience. 

For instance, to trade Bitcoin (BTC), you must purchase at least 0.001 BTC, which did not align with my budget.

The only cryptocurrency that I can purchase with RM100 on Tokenize with accordance to the minimum trading quantities are BCH, LTC, UNI and XRP – which doesn’t really appeal to me. 

Trading Features and Fees

Tokenize Malaysia offers a range of features tailored to meet the needs of both beginner and experienced cryptocurrency traders. 

However, the platform’s trading structure, fees, and certain limitations stand out as crucial aspects to consider before diving in.

Supported Digital Assets

Tokenize Malaysia supports 7 popular cryptocurrencies, making it a versatile platform for traders. 

Each asset comes with a minimum trading quantity, which users must adhere to when placing orders:

• Bitcoin (BTC): 0.001
• Ethereum (ETH): 0.01
• Bitcoin Cash (BCH): 0.01
• Litecoin (LTC): 0.1
• Solana (SOL): 0.1
• Uniswap (UNI): 1
• Ripple (XRP): 10

Compared to platforms like Luno and Hata, Tokenize Malaysia’s minimum trading quantities are a drawback, as those platforms allow users to trade with no such restrictions.

If you’d like to check out alternative exchanges, check out my article on Luno here and Hata here!

Trading Fees

Tokenize Malaysia charges fees based on the type of order executed:

• Taker Fee: 0.6% (Effective 11th November 2024)
• Maker Fee: 0.1%

The platform also includes an 8% Sales and Service Tax (SST) on trading fees, as required under Malaysian regulations. The SST increases the effective cost of trading, which might deter some users.

Fee Calculation Example:

Here’s a table showing the fee example for RM100, RM1000, and RM10000 transactions on Tokenize Malaysia, including both the trading fee and the Service Tax (SST).

Order Value (RM)	Trading Fee	Trading Fee (RM)	SST (8%) on Trading Fee	Total (RM)
RM100	Taker (0.6%)	RM0.60	RM0.05	RM100.65
	Maker (0.1%)	RM0.10	RM0.01	RM100.11
RM1000	Taker (0.6%)	RM6.00	RM0.48	RM1006.48
	Maker (0.1%)	RM1.00	RM0.08	RM1001.08
RM10000	Taker (0.6%)	RM60.00	RM4.80	RM10064.80
	Maker (0.1%)	RM10.00	RM0.80	RM10010.80

 

Notes:

1. Taker Fee (0.6%): Charged when an order is fulfilled immediately at the market price.
2. Maker Fee (0.1%): Charged when the order is placed on the order book and gets filled at a later time.
3. SST (8%): Service tax is charged on the trading fee amount, which is added to the total cost.

Fiat Deposits and Withdrawals

• Deposit: Minimum RM100 via FPX or bank transfer. Deposits using third-party accounts are not allowed and incur a refund fee of up to RM50 if attempted.
• Withdrawal: Minimum RM300, with no fees for bank transfers.

Crypto Withdrawal Fees

Digital asset withdrawals are subject to a 0.1% fee, with a minimum dynamic network fee. For example:

• BTC Withdrawal: 0.00025 BTC minimum fee + network fee.

User Experience with Trading Features

The minimum trading quantities and additional fees can be challenging for casual traders or those starting small. 

The lack of upfront clarity on trading limits added to my frustration, as I discovered these only after depositing funds.

Who Should Use Tokenize Malaysia?

• New Traders: Those seeking a safe, regulated exchange to enter the cryptocurrency market.
• Regulation-Conscious Investors: Users prioritizing compliance and local legal standards in their trading experience.
• Mid-to-High Budget Traders: Individuals who can meet the minimum trading quantity requirements without financial strain.

Who Should Explore Alternatives?

• Casual Traders: Those with limited budgets or who prefer trading platforms without minimum trading quantities may find better options like Luno or Hata.
• Frequent Traders: High Taker fees and additional SST charges can add up, making it less cost-effective for active trading.
• Impatient Users: If you value speed during account setup or trading execution, Tokenize Malaysia’s slower verification process might frustrate you.

Pros and Cons

Tokenize Malaysia, as a regulated cryptocurrency exchange, has its advantages and drawbacks. 

Here’s a breakdown to help you weigh whether it’s the right platform for your trading needs.

Pros

1. Regulatory Compliance
   • Tokenize Malaysia operates under Malaysian regulations, ensuring a safe and legitimate trading environment for users.
   • It offers peace of mind for Malaysian residents looking for a platform aligned with local laws.
2. Diverse Asset Offerings
   • Supports popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Ripple (XRP).
   • Provides access to both established and emerging digital assets.
3. Transparent Fees
   • Clear distinction between Maker (0.1%) and Taker (0.6%) fees.
   • SST (8%) is explicitly communicated, preventing surprises when trading.
4. No Fiat Withdrawal Fees
   • Bank transfers for withdrawals incur no fees, making it cost-effective to cash out funds.
5. User-Friendly Interface
   • The platform’s design is intuitive, suitable for both beginners and experienced traders.

Cons

1. Minimum Trading Quantities
   • Strict minimum trading amounts for each asset can be limiting for small-scale traders. 
2. High Taker Fees
   • A 0.6% Taker fee, combined with the 8% SST, can significantly increase trading costs, especially for active traders.
3. Slow Verification Process
   • Document verification during account setup can be delayed, preventing immediate access to trading.
4. Lack of Upfront Clarity
   • Details like minimum trading quantities are not prominently displayed during the onboarding process, which can lead to frustration after depositing funds.
5. Limited Fiat Deposit Flexibility
   • Minimum deposit of RM100 and the inability to use third-party bank accounts can be restrictive for some users.

To check out other alternative platforms to invest in cryptocurrency, check out my article on:

• Luno Malaysia
• Hata Malaysia

Conclusion

Tokenize Malaysia provides a regulated, secure platform for cryptocurrency trading, catering specifically to Malaysian residents. 

Its compliance with local laws, range of supported digital assets, and user-friendly interface make it a reliable choice for those seeking a legal and straightforward trading environment. 

However, the platform has some notable drawbacks, including high Taker fees, minimum trading quantity requirements, and delays in the verification process, which may not appeal to all users.

Have you tried Tokenize? Or are you thinking about starting? I’d love to hear about your experiences and any questions you may have! 

Drop a comment below to share your thoughts, or feel free to reach out directly to me via email [email protected] 

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