Malaysia’s Securities Commission (SC) is preparing to relax rules for cryptocurrency exchanges, making it easier and faster to list certain digital assets. This move is aimed at growing the country’s crypto market while ensuring investor protection and market stability.
New Rules Aim to Speed Up Crypto Listings and Increase Exchange Accountability
Under the new proposal, approved digital assets that meet specific conditions will be allowed to be listed without prior regulatory approval from the SC. These conditions include:
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A mandatory security audit with publicly available results
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A minimum of one year of trading history on a Financial Action Task Force (FATF)-compliant platform
This policy shift is designed to streamline the asset listing process, encourage innovation, and give crypto exchanges greater responsibility in choosing which assets to list. Exchanges will need to ensure full compliance with the requirements, reinforcing transparency and due diligence in the listing process.
Public Feedback Sought on High-Risk Tokens and Stronger Safeguards Proposed
The SC is currently seeking public feedback on whether riskier crypto assets—such as privacy coins, memecoins, and low-demand utility tokens—should be permitted for trading in Malaysia. This reflects the regulator’s effort to balance market growth with investor safety.
To support the changes, the SC is also proposing stricter governance standards for digital asset exchanges. These include:
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Full segregation of customer assets
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Stronger financial safeguards
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Local oversight and management of crypto operations
These added layers of protection are designed to ensure investor funds remain secure and to uphold the overall integrity of the Malaysian crypto market.
The consultation period will help the SC finalize the framework before implementation. If adopted, these new rules could position Malaysia as a more competitive and investor-friendly hub for cryptocurrency activity in the region.
