Malaysia Securities Commission enhances digital asset exchange rules to streamline product launches and raise investor safeguards

The Malaysia Securities Commission has revised its Guidelines on Recognized Markets to update the regulatory framework for Digital Asset Exchanges. The changes are designed to speed up product launches on regulated DAX platforms by streamlining approvals, while imposing higher accountability standards, stronger client asset safeguards, enhanced governance requirements, and tighter expectations on financial stability, shareholding and management proficiency. The amendments took effect on 20 May 2026. The update also extends the investor protection framework beyond core platform rules. DAX operators will become members of the Financial Markets Ombudsman Service in 2026, giving investors access to formal dispute resolution. Alongside the rule changes, the Securities Commission is tightening action against unregulated digital asset activity, including administrative action against four DAXs operating without registration and cooperation with technology companies such as Google to restrict promotions by unregistered DAXs to Malaysians through social media platforms and channels from 14 April 2026. The revisions follow the Securities Commission’s benchmarking work, stakeholder engagement and feedback from a public consultation conducted last year.