Malaysia Crypto Buying and selling Hits Report $2.9B as Regulator Proposes Sweeping DAX Reforms

Malaysia’s Securities Fee (SC) has proposed sweeping modifications to its digital asset change (DAX) regulatory framework. This follows a pointy rise in digital asset buying and selling, which hit a report RM13.9 billion ($2.9 billion) in 2024, greater than double the quantity recorded in 2023.

In accordance with the session paper launched by the fee, the proposed updates purpose to scale back time-to-market for brand spanking new tokens whereas enhancing governance, investor safety, and platform resilience.

Notably, Malaysia’s digital asset market has grown considerably because the DAX framework was launched in 2019. The surge in buying and selling quantity in 2024 was linked to rising curiosity from each retail buyers and institutional contributors.

The SC additionally highlighted rising involvement from conventional capital market intermediaries, who’re gaining publicity to crypto property by means of direct funding and fund-based channels.

Malaysia Proposes Sooner Listings with Eligibility Standards Amongst Different Reforms

Below the proposed reforms, sure tokens could also be listed on regulated DAX platforms with out first securing the SC’s approval. This alteration would solely apply to digital property that meet predefined eligibility requirements.

In accordance with the regulator, it seeks to chop down regulatory delays and permit exchanges to reply extra rapidly to market demand. On the identical time, DAX operators would bear higher duty for guaranteeing that listed property adjust to authorized and threat necessities.

The SC additionally plans to introduce enhanced governance obligations. DAX operators can be required to segregate shopper property from their very own operational funds. This transfer seeks to forestall misuse and bolster belief amongst customers.

SC additionally famous that operational management requirements would even be upgraded to mirror the distinctive dangers of buying and selling digital property. This contains extra stringent oversight of inside processes and improved threat administration programs.

One other key facet of the proposal is elevating monetary thresholds for licensed DAX operators. The SC stated the modifications are meant to bolster the operational and monetary resilience of exchanges.

Stronger capital necessities would assist make sure that platforms can face up to market shocks and fulfill obligations to purchasers. The regulator believes this can increase investor confidence and contribute to a extra steady buying and selling surroundings.

Malaysia Ramps Up Crypto Reform Efforts Amid Surge in Mining-Linked Energy Theft and Regulatory Gaps

The session interval runs from June 30 to August 11, 2025 and notably, these proposed modifications kind a part of the SC’s broader technique to hold Malaysia’s digital asset ecosystem aggressive and safe.

The session comes amid wider authorities efforts to place Malaysia on the forefront of accountable fintech innovation. In March 2025, Financial institution Negara Malaysia (BNM) introduced plans to discover asset tokenization and digital asset applied sciences.

It will concentrate on collaboration with the personal sector and use circumstances similar to tokenized deposits and CBDCs, as outlined in its 2022-2026 monetary sector blueprint.

Regardless of its progressive stance, the central financial institution cautioned that cryptocurrencies are nonetheless not authorized tender as a result of their dangers. This cautious method was echoed within the SC’s current enforcement actions, which focused unlicensed overseas crypto exchanges similar to Bybit and Huobi World for working with out registration.

Steady crypto rules in Malaysia is comprehensible as crypto scams and theft surge. Tenaga Nasional Berhad (TNB) reported a 300% rise in energy theft linked to unlawful crypto mining.

This determine rose from 610 circumstances in 2018 to 2,397 in 2024, with round 1,699 crypto-related complaints obtained between 2020 and 2024. This comes as no regulatory physique oversees mining operations.

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