Coinhako, a Singapore bitcoin wallet and exchange, is raising capital to expand across Southeast Asia after strong early traction in Malaysia. The company launched there in June and has seen what CTO
Coinhako, a Singapore bitcoin wallet and exchange, is raising capital to expand across Southeast Asia after strong early traction in Malaysia. The company launched there in June and has seen what CTO Gerry Eng describes as "expeditious growth." This month, Coinhako released a new mobile app and redesigned website to support its broader regional ambitions.
Coinhako's co-founder Yusho Liu said the company plans to operate in five Southeast Asian countries by 2018. "We are still in the midst of evaluating and discussing with out local partners for market entries," Liu said, and he counted Indonesia among the firm's top targets. The company is also adding Ethereum support, which Liu expects to complete by Q1 2017.
Through November, Coinhako has processed more than S$100 million (US$72 million) in bitcoin transactions, with monthly volumes running in the millions, according to Liu. That scale reflects rising Malaysian interest in blockchain for remittances, a market that pulls in US$1.5 billion per year.
Two other fintech firms have already entered Malaysia's remittance corridor. In June, Singapore's Dragonfly Fintech partnered with Metro Money Exchange to deploy blockchain technology for faster, cheaper, and more auditable payments. Later, Hong Kong's Bitspark teamed with Malaysian e-commerce and entertainment company Vitaxel to launch remittance services.
"Bank Negara Malaysia is evolving the regulatory framework to foster fintech innovation in Malaysia," Eng said. "Now is the best time to provide more options to the flourishing Malaysian community."
Singapore stands out as the region's blockchain hub. The Monetary Authority of Singapore lists blockchain alongside mobile payments, biometrics, big data, and cloud computing as transformative fintech trends. In August, Hitachi and the Bank of Tokyo-Mitsubishi UFJ began a proof-of-concept for blockchain-based check handling in Singapore. The system would issue, transfer, and collect checks on blockchain, automating intermediary work and preventing tampering.
Singapore's monetary authority proposed a licensing framework for digital currency exchanges. "The scope of currency conversion activities is intended to encompass the business of exchanging of currencies at a rate of exchange," the MAS said. The authority added that "In addition, it is likely that under the [Proposed Payments Framework], virtual currency intermediaries which buy, sell, or facilitate the exchange of virtual currencies, such as bitcoin, will also be considered to undertake [money transmissions and conversion services]."
