Securities Commission Malaysia has published a consultation paper seeking feedback on a proposed framework for tokenised capital market products, covering the digital representation of capital market products using distributed ledger technology (DLT) such as tokenised shares, tokenised bonds and tokenised funds. The proposal is positioned as distinct from the existing framework for digital tokens and digital currencies, and is intended to support DLT use cases in capital markets while maintaining investor protection. The consultation focuses on requirements covering additional obligations such as enhanced disclosures, governance controls, and record and registry requirements, as well as technology risk management aligned with the SC’s Guidelines on Technology Risk Management, including cybersecurity, data privacy and operational resilience. It also seeks feedback on additional requirements for licensed persons dealing in tokenised capital market products, and reiterates that tokenised capital market products remain subject to the same regulatory treatment as conventional capital market products under existing securities laws and guidelines. The consultation period runs from 6 May to 16 June 2025, and the SC invites input from issuers, licensed intermediaries, technology service providers, institutional investors, legal and compliance professionals, and industry associations, while encouraging firms considering tokenised offerings to engage with the SC on their plans.

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