Cryptocurrency exchange Hata.io has raised $4.2 million in seed funding to expand its crypto offerings and user base across the Asia Pacific region.

Malaysian crypto exchange Hata has secured $4.2 million in a seed funding round led by Castle Island Ventures and Cadenza Ventures.

In a press release on Tuesday, Oct. 22, the exchange said the capital injection will help the company expand its product offerings and onboard new users in the Asia Pacific region, particularly targeting the retail and institutional users “who prefer to trade in fiat currencies such as the MYR and USD.”

“We believe that Hata’s innovative approach and commitment to user engagement will drive the next wave of growth in Malaysia’s digital asset market.”

Max Shapiro, managing partner at Cadenza Ventures

Other investors, including Bybit, AP Capital, Plug and Play Tech Centre, among others, also participated in the funding.

Hata chief executive David Low expressed enthusiasm for the backing, stating that their support will empower users to navigate the crypto market more confidently. Under the funding agreement, both Castle Island Ventures and Cadenza Ventures will join Hata’s board as directors, the press release reads.

As the only dual-licensed crypto exchange in Malaysia, Hata.io operates under the regulations of both the Securities Commission Malaysia and the Labuan Financial Services Authority. Previously, Hata secured around $690,000 in pre-seed funding from a group of angel investors in the fintech community, including 1337 Ventures and Raja Hamzah.

Malaysia has taken a relatively strict approach toward crypto exchanges that may not comply with local regulations. In August 2022, the Securities Commission of Malaysia added crypto exchange Huobi (now known as HTX) to its investor alert list for allegedly operating without proper registration. A year later, the regulator required Huobi to stop its operations in the region entirely.