The Malaysian Securities Commission (SC) has proposed amendments to its regulatory framework for digital assets, allowing crypto exchanges to list specific digital assets without prior approval.
Overview of DAX and Its Impact
Since its introduction in 2019, the DAX framework has contributed to growth in the digital assets sector, with total trading volume reaching a record RM13.9 billion (approximately $3.31 billion) in 2024, more than double the previous year's volume.
Proposed Regulatory Changes
Under the new amendments, certain digital assets could be listed on DAXs without prior SC approval, provided they meet minimum criteria. 'This aims to accelerate time-to-market, increase DAX operator accountability, and widen product offerings,' states the commission's documents.
Investor Protection Measures and Feedback Collection
The proposed amendments also suggest stricter asset safeguards, requiring at least 90% of investors' digital assets to be held in offline wallets, with the remainder in hot wallets that must be fully collateralized. The SC is currently seeking feedback on these amendments until August 11.
The proposed changes to DAX regulations in Malaysia reflect the growing interest in digital assets and the necessity for adapting the regulatory framework for investor protection and simplifying the listing process.
