The Securities Commission Malaysia (SC) has released a consultation paper outlining proposed enhancements to the regulatory framework governing Digital Asset Exchanges (DAX), in response to continued growth in the domestic digital asset market.
Since the introduction of the DAX regulatory framework in 2019, Malaysia’s digital asset ecosystem has experienced significant development, culminating in a record annual trading value of RM13.9 billion in 2024. This figure marks a 2.6-fold increase compared to the previous year, signalling a sharp rise in both retail and institutional participation.
Recognising the expanding role of DAXs in facilitating responsible access to digital asset investments within a regulated environment, the SC is seeking public feedback on a series of revisions aimed at fortifying market integrity and investor protection while enabling greater agility for exchange operators.
Key proposals include the introduction of streamlined listing requirements for digital assets, enhanced safeguards for client assets, and more robust financial and operational standards for DAX operators. In a move intended to foster innovation and reduce regulatory friction, the SC is also considering the removal of its direct approval requirement for certain asset listings, provided minimum criteria are met. This approach is expected to shorten time-to-market while increasing the accountability of licensed operators.
The regulator has also observed rising interest from capital market intermediaries and institutional investors engaging in the sector either through direct exposure or fund-based strategies, underscoring the need for a more sophisticated and resilient regulatory infrastructure.
Feedback is invited from a broad spectrum of stakeholders, including digital asset issuers, DAX operators, financial institutions, market participants, industry associations, and legal and compliance professionals. Submissions must be made by 11 August 2025.
The full consultation paper is available on the SC’s official website.
-Fintech News
