The Malaysian Securities Commission has announced significant updates to its regulatory framework for digital assets aimed at enhancing investor protection and expediting token listings.
Proposed Updates to Regulatory Framework
The Commission released a consultation paper proposing to allow certain digital assets to be listed on exchanges if they meet set eligibility criteria. The regulator also plans stricter governance and operational requirements for exchange operators, such as mandatory segregation of client assets and higher financial thresholds.
Stakeholder Feedback Collection
The Commission is collecting feedback from stakeholders, including issuers, exchanges, financial institutions, and legal professionals. The consultation period will run from June 30 to August 11.
Growth of Malaysia's Digital Asset Sector
Since the introduction of the DAX framework in 2019, the digital asset sector in Malaysia has experienced significant growth. Trading volumes in 2024 reached a record RM13.9 billion ($2.9 billion), more than doubling compared to the previous year. According to the Commission, there has been increased participation from institutional investors and traditional capital market intermediaries.
The proposed reforms reflect Malaysia's commitment to ensuring higher regulatory standards for digital assets and improving investor protection.
