Inside Crypto Governance: A Candid Conversation with Luno Malaysia’s Country Manager

In an industry where technology evolves at lightning speed, corporate governance can be the deciding factor between long-term success and regulatory hurdles. Few know this balancing act better than Scarlett Chai, Country Manager at Luno Malaysia. After joining the company in 2019—around the time Malaysia rolled out its digital asset guidelines—Scarlett helped steer Luno to become the country’s first Securities Commission (SC)-approved crypto exchange. She now leads a team that has attracted over one million verified users, a milestone underpinned by robust compliance and a user-friendly platform.

Watch the Full Interview on YouTube

Before diving deeper into our biggest takeaways, be sure to watch the full episode on YouTube to catch every insight from Scarlett’s journey. If you’re looking to understand what it takes to build trust with regulators, manage risk effectively, and deliver a top-notch crypto experience, this conversation is for you.

Key Highlights from the Conversation

1. From Geology to Crypto: Embracing the Unknown

Scarlett holds a master’s degree in petroleum geology—far from finance or technology. Yet when the chance to join Luno appeared, she took the plunge. “I was asked if I wanted to be part of something that could really shape the future of finance in Malaysia,” she recalls. Despite her non-traditional background, Scarlett found that crypto rewards those who are curious and adaptable.

“If I was given a chance to join a booming industry from the start, I’d jump aboard the rocket ship.” – Scarlett

2. Earning Regulatory Trust Through Proactive Governance

One of Luno’s distinguishing features is its early and ongoing commitment to regulation. Scarlett attributes a lot of their success to consistent engagement with the Securities Commission (SC) and adhering to strict anti-money laundering (AML) and KYC standards. According to Scarlett, “It’s really about walking the talk. You can’t just write good policies; you have to actually live up to them in day-to-day operations.”

3. The “Three Lines of Defense” in Compliance

Scarlett explained Luno’s structured approach to governance through three lines of defense:

Business & Product Teams – Day-to-day operations and customer-facing processes.
Controlling Functions – Compliance, Legal, and Risk teams who write policies and oversee adherence.
Audit – Independent reviewers (internal and external) ensuring policies and controls are actually working.

This model keeps innovation alive while preserving accountability at every level.

4. Navigating Institutional Adoption & Stablecoins

Although Luno initially focused on retail users, Scarlett says Luno Institutional has become a growing priority. Enterprises want to invest and manage crypto in a secure, compliant manner. She also touched on stablecoins, noting that while Malaysia has yet to recognize them as legal tender, regulators are increasingly open to understanding their benefits—especially for cross-border transactions.

5. Balancing Customer Experience & Compliance

A recurring theme in the conversation was how compliance doesn’t have to kill innovation or good UX. “We intentionally design our mobile apps to be user-friendly, but there’s a ton of checks running in the background,” Scarlett explains. Striking this balance means that everyday users can easily buy or sell digital assets, while Luno still meets the robust security and regulatory standards demanded by Malaysian authorities.

Final Thoughts

Scarlett’s story underscores an important truth: sound governance is not a roadblock to crypto innovation—it’s a springboard. By building trust with regulators, Luno Malaysia has paved the way for both retail and corporate users to embrace digital assets responsibly. If you’re looking to glean actionable insights on balancing regulatory demands with user satisfaction, Scarlett’s first-hand experience offers a goldmine of practical advice.

Ready for the Full Scoop?

Head over to our YouTube channel to watch this fascinating conversation in its entirety.
For those who prefer to listen on the go, catch the podcast on Spotify and dive into Scarlett’s real-world insights on running a regulated exchange.

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