 has proposed new enhancements to its regulatory framework for Digital Asset Exchanges (DAX).){kind=link}
Malaysia’s Securities Commission (SC) has proposed new enhancements to its regulatory framework for Digital Asset Exchanges (DAX), aiming to boost the sector’s competitiveness while tightening investor safeguards and operational standards.
In a consultation paper, the SC outlined several proposed changes, including liberalizing the listing framework for digital assets, improving governance for client asset protection, and strengthening the financial resilience of DAX operators.
The proposals come as digital asset activity continues to grow in Malaysia. In 2024, total DAX trading volume hit RM13.9 billion, more than doubling from the previous year.
Under the new rules, certain digital assets may be listed on DAXs without the SC’s prior approval, provided they meet minimum criteria. The move is expected to accelerate time-to-market and diversify offerings.
“Removing the SC’s direct concurrence requirement for specific listings shifts more responsibility to the DAX operators while making the market more agile,” said a Kuala Lumpur-based fintech lawyer familiar with digital asset regulations.
The regulator also plans to impose stricter requirements on safeguarding client assets, mandating segregation protocols and enhanced governance frameworks.
Financial thresholds for DAX operators will also be raised to ensure operational stability and investor confidence.
The SC is seeking feedback from stakeholders, including investors, financial institutions, legal professionals, and DAX operators, until August 11, 2025. The consultation paper is available on the SC’s website.
The proposed reforms reflect a maturing digital asset market in Malaysia and the regulator’s attempt to balance innovation with market discipline.
By streamlining asset listings and enforcing higher operational standards, the SC aims to position Malaysia as a credible hub for digital assets in Southeast Asia while shielding investors from systemic risks.
Business News Asia