Malaysia’s Securities Commission (SC) has proposed a set of regulatory enhancements aimed at strengthening the country’s digital asset exchange (DAX) framework, seeking to accelerate token listings and bolster investor protection measures.
According to a consultation paper published on Monday, the proposed changes include allowing certain digital assets to be listed on DAX platforms without the SC’s prior approval, provided they meet minimum eligibility requirements.
The shift is intended to reduce time-to-market and expand product offerings, while increasing the accountability of exchange operators.
The regulator also plans to introduce enhanced governance and operational control requirements for DAX operators, including mandatory segregation of client assets.
These measures are designed to ensure that operational practices are aligned with the risks associated with digital asset trading, the SC said.
The proposals follow continued growth in Malaysia’s digital asset industry since the DAX framework was first introduced in 2019.
The total trading value reached a record RM13.9 billion ($2.9 billion) in 2024, more than double the previous year’s volume.
The SC noted a rise in participation from institutional investors and traditional capital market intermediaries, both through direct investments and fund-based exposure.
Under the proposed framework, DAX operators would also be required to meet higher financial thresholds to reinforce their operational and financial resilience.
The aim is to strengthen the integrity of regulated platforms and instill greater confidence among market participants.
The SC has invited feedback on the consultation paper from a wide range of stakeholders, including digital asset issuers, regulated DAX operators, financial institutions, and legal and compliance professionals.
The public consultation period will run from June 30 to August 11, 2025.
The consultation paper is available on the SC’s website. The proposed changes are part of the regulator’s ongoing efforts to ensure that Malaysia’s digital asset ecosystem remains competitive, secure, and well-regulated amid global shifts in the digital finance landscape.
