The Securities Commission Malaysia (SC) is raising the bar for digital asset exchanges with revised rules on product approvals, governance and investor protection.
The amendments to the Guidelines on Recognized Markets take effect on 20 May 2026 and are aimed at strengthening the regulatory framework for regulated digital asset exchange operators in Malaysia.
The revised guidelines will streamline the approval process to help regulated platforms launch products faster, while placing greater accountability on operators.
They also strengthen client asset safeguards, governance standards and operational resilience.
The SC is raising requirements around financial stability, shareholding structures and management competency for regulated platforms.
Investor safeguards will be strengthened as trading activity grows
Digital asset exchange operators will also be included as members of the Financial Markets Ombudsman Service in 2026, giving investors access to a formal dispute resolution channel.
The SC has also taken administrative action against four digital asset exchanges for operating without registration.
It has worked with technology companies including Google to restrict unregistered digital asset exchanges from promoting their services to Malaysians through social media platforms and channels from 14 April 2026.
SC Chairman Dato’ Mohammad Faiz Azmi said,
“Our enhanced guideline demands resilient and credible partners within Malaysia’s financial market ecosystem.
As the market grows more inclusive and innovative, it must be balanced with the highest standards of governance.”
Malaysia’s regulated digital asset market continued to grow in 2025, with total trading value on regulated digital asset exchanges rising 23% to RM17.14 billion from RM13.93 billion in 2024.
The revised framework also supports the Capital Market Masterplan 2026-2030, which aims to grow Malaysia’s capital market to between RM5.8 trillion and RM6.3 trillion by 2030.
The SC has also issued a Practice Note clarifying digital asset broking services and updated its Guidelines on Exchange-Traded Funds to enable digital currency ETFs.
The revisions follow a benchmarking exercise, stakeholder engagements and feedback from a public consultation conducted last year.
Featured image: Edited by Fintech News Malaysia, based on image by tahantanha10 via Magnific
