The Securities Commission Malaysia (SC) announced a three initiatives to drive innovation in the capital market during the SCxSC Fintech Summit 2024.
Among these efforts is the introduction of a regulatory sandbox that will allow businesses to test new financial products and services in a controlled environment.
The sandbox is designed to encourage developments in areas such as financial inclusiveness, Islamic finance, and retirement solutions, while maintaining investor protection.
The sandbox is open for applications until April 2025, with accepted companies given up to 12 months to test their products or services.
Pre-consultation sessions are required before submission, and these sessions are available immediately.
Interested parties can kick-start the process by contacting the SC via email at afinity@seccom.com.my.
In addition, the SC is enhancing its regulatory framework to support the tokenisation of securities, facilitating the digitalisation of traditional financial assets like stocks and bonds.
The SC is taking a technology-agnostic approach to this initiative, aiming to develop best practices for tokenised offerings.
To help intermediaries manage the associated risks, the SC plans to issue detailed guidance early next year.
The SC is also collaborating with Khazanah Nasional to explore the issuance of tokenised bonds, using blockchain technology.
This initiative will focus on streamlining bond issuance processes, with a particular emphasis on smart contracts and custodial arrangements.
These measures, revealed at the summit, align with the SC’s commitment to promoting responsible innovation.
The two-day event, attended by around 1,000 participants, highlights the SC’s broader efforts to foster a dynamic and forward-looking capital market.
SC Chairman Dato’ Mohammad Faiz Azmi said in his opening address,
“To drive innovation in the capital market, the SC is taking a holistic approach.
Through initiatives like the regulatory sandbox and SCxSC, we enable industry experimentation and foster collaboration with the broader ecosystem.”
Featured image credit: Edited from Freepik
