Securities Commission Malaysia has published a consultation paper proposing enhancements to its regulatory framework for Digital Asset Exchanges (DAXs), aiming to increase the competitiveness of Malaysia’s regulated digital asset market while strengthening investor protection and the resilience and integrity of DAX operators. The proposals cover three main areas. First, the SC would liberalise the framework for listing digital assets on DAXs by removing its direct concurrence for certain listings, provided minimum criteria are met, to shorten time-to-market, widen product offerings and increase DAX operator accountability. Second, it would enhance requirements on safeguarding client assets and governance, including stronger operational governance and control expectations and requirements relating to the segregation of clients’ assets. Third, it would strengthen requirements for DAX operators through minimum financial criteria and more robust investor protection mechanisms. As context, the SC noted that 2024 recorded the highest total trading value since the DAX framework was introduced in 2019, at MYR 13.9 billion, 2.6 times higher than 2023, alongside growing interest from conventional capital market intermediaries and institutional investors. The consultation runs from 30 June to 11 August 2025 and seeks feedback from digital asset issuers, prospective and existing regulated DAX operators, financial institutions, capital market participants and other stakeholders.

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