Malaysia’s Securities Commission (SC) is taking a progressive step toward digital asset regulation with a newly proposed framework aimed at easing the listing process for cryptocurrencies on local exchanges. The regulator has opened a public consultation to gather feedback on the plan, which could significantly change how crypto assets are introduced to the Malaysian market.
Accelerated Listing Without Prior Regulatory Approval
Under the proposed changes, certain digital assets could be listed without needing prior approval from the SC—a move intended to improve efficiency and market responsiveness. The aim is to accelerate time-to-market, enhance exchange accountability, and broaden product offerings for Malaysian investors.
“This shift would hold exchanges accountable for asset listings while enabling faster access to approved cryptocurrencies,” the SC stated.
However, strict criteria must still be met. Eligible digital assets must:
- Undergo independent security audits with publicly available results.
- Be actively traded for at least one year on a FATF-compliant platform.
Heightened Scrutiny for Risky Assets
The SC is also seeking input on whether high-risk digital assets—such as privacy coins, memecoins, and low-demand tokens—should be eligible for streamlined listing. These assets are associated with challenges such as:
- Lack of transparency (e.g., Monero) and the potential for illicit use.
- Extreme price volatility (e.g., memecoins).
- Low liquidity or utility in the case of emerging tokens.
“Assets lacking clear use cases or transparency may pose increased money laundering or terrorism financing risks,” the regulator warned.
Strengthened Governance and Asset Protection Rules
To support a more open listing framework, Malaysia is also tightening custody and governance rules. Key proposals include:
- Segregation of user assets to prevent misuse or loss.
- Minimum financial thresholds for exchanges.
- Mandatory policies for asset protection and repayment in insolvency scenarios.
A senior management representative residing in Malaysia would be required to oversee wallet administration, and platforms holding customer assets must either be registered as custodians or work with a licensed digital asset custodian.
A Balanced Move Toward Market Maturity
Malaysia’s proposal strikes a balance between innovation and investor protection, aligning with global trends in crypto regulation under frameworks like MiCA and FATF. By simplifying crypto listings while strengthening safeguards, the country positions itself for greater participation in the global digital asset ecosystem.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.