Malaysia's Securities Regulatory Authority Upgrades Cryptocurrency Listing Guidelines
The Securities Commission of Malaysia (SC) has announced significant proposals to enhance its regulatory framework for Digital Asset Exchanges (DAX), with the aim of accelerating token listings, increasing operator accountability, and widening product offerings.
## Key Amendments
The proposed changes include a streamlined listing process, where certain digital assets can be listed on DAX platforms without prior regulatory approval, provided they meet specific eligibility criteria. These criteria include undergoing security audits with publicly available results.
Additionally, DAX operators will be required to implement stricter governance and operational controls. This includes mandatory segregation of client assets to ensure their safety and higher financial thresholds to enhance operational resilience.
The amendments also place full accountability on DAX operators for the assets they list. This move is intended to increase operator accountability and widen product offerings.
## Background and Context
The proposed reforms follow the substantial growth in Malaysia's digital asset sector since the introduction of the DAX framework in 2019. In 2024, trading volumes reached a record RM13.9 billion ($2.9 billion), more than doubling from the previous year. This growth has been accompanied by increased participation from institutional investors and traditional capital market intermediaries.
The SC has previously taken enforcement actions against unlicensed crypto exchanges, such as Bybit and Huobi Global, emphasizing the importance of compliance with regulatory requirements.
The proposals are open for public feedback from stakeholders, including issuers, exchanges, financial institutions, and legal professionals. The consultation period is from June 30 to August 11, 2025.
To list a digital asset, its underlying protocol must have traded for at least one year on a Financial Action Task Force (FATF)-compliant Virtual Asset Service Provider (VASP). Moreover, the amendments focus on stricter asset safeguards in the digital asset industry. At least 90% of investors' digital assets must be held in offline wallets under the proposed amendments, with the remainder held in hot wallets, which must be fully collateralised.
These proposed changes could lead to a more efficient trading process for digital assets on DAXs, contributing to the continued growth and development of the digital asset industry in Malaysia.
Bitcoin trading on crypto exchanges could potentially benefit from the streamlined listing process proposed by the Securities Commission of Malaysia (SC), as digital assets that meet specific eligibility criteria can be listed without prior regulatory approval. In line with the amendments, crypto exchanges may be required to hold at least 90% of investors' digital assets offline, enhancing the safety and security of these assets in the finance sector.
