The Securities Commission Malaysia (SC) has released a consultation paper inviting public input on proposed changes to its regulatory framework for Digital Asset Exchanges (DAX).

The proposals aim to support the growth of Malaysia’s digital asset market, strengthen investor protection, and enhance the resilience and integrity of licensed exchange operators.

The SC noted that DAXs play a key role in enabling responsible access to digital asset investments within a regulated environment.

Since the DAX framework was introduced in 2019, the local digital asset industry has continued to grow, with 2024 recording the highest annual trading value at RM13.9 billion, a 2.6-fold increase from the previous year.

The SC has also observed growing interest from capital market intermediaries and institutional investors, either through direct investments or via funds.

In response, the regulator is reviewing several aspects of the framework.

Among the proposed changes are streamlined listing requirements for digital assets, improved measures for safeguarding client assets, and stronger financial and operational requirements to boost resilience and investor protection.

The SC is also considering removing the need for its direct approval for certain asset listings, subject to minimum criteria, to accelerate time to market and increase operator accountability.

Members of the public, including digital asset issuers, DAX operators, financial institutions, capital market participants, industry associations, and legal or compliance professionals, are encouraged to submit feedback by 11 August 2025.

The consultation paper is available on the SC’s website.

Featured image: Edited by Fintech News Malaysia, based on image by thanyakij-12 via Freepik