The Securities Commission Malaysia (SC) has enhanced the Guidelines on Recognized Markets (Guidelines), marking a significant step in the evolution of the regulatory framework for Digital Asset Exchange (DAX).
The enhancements will bolster the competitiveness of regulated DAX operators while fortifying investor protection and the overall resilience of Malaysia’s digital asset segment.
This aligns the local digital asset landscape with global developments amid growing institutional participation in this asset class.
The revised Guidelines aim to:
- Speed up product launches on regulated DAX platforms by streamlining the approval process, while holding DAX operators to higher standards of accountability.
- Fortify investor protection by strengthening client asset safeguards and enhancing the governance framework.
- Enhance operational resilience of regulated DAX platforms by raising requirements for financial stability, shareholding and management proficiency.
In addition, DAX operators will be included as members of the Financial Markets Ombudsman Service (FMOS) in 2026, giving investors access to a formal dispute resolution avenue.
Furthermore, the SC is tightening regulatory action against unregulated digital asset activities with administrative action taken against four DAXs for operating without registration. Meanwhile, the SC has also worked with technology companies such as Google to limit unregistered DAX from promoting their services to Malaysians via social media platforms and channels, starting 14 April 2026.
This enhanced DAX framework is in line with the Capital Market Masterplan’s 2026-2030 goal of increasing Malaysia’s capital market size to RM5.8 - RM6.3 trillion by 2030. The growth of digital assets is a key pillar in building a more vibrant, inclusive and resilient market ecosystem.
The SC Chairman Dato’ Mohammad Faiz Azmi said the digital asset industry must evolve and embrace the institutional discipline required of a mature capital market.
"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 digital asset market continues to record steady growth, with total trading value on regulated DAXs increasing to RM17.14 billion in 2025, representing a 23% increase from RM13.93 billion in 2024.
Besides enhancing the regulation of DAX platforms, the SC continues to bridge the gap between traditional and alternative markets. This includes issuance of a Practice Note clarifying digital asset broking services and an updated Guidelines on Exchange-traded Funds (ETF) to enable the offering of digital currency ETF.
These initiatives will significantly broaden investor access to digital assets while maintaining the integrity of Malaysia’s capital market.
The amendments in the Guidelines take effect on 20 May 2026. The revisions take into account the SC’s findings following a benchmarking exercise, engagement with key stakeholders and feedback from public consultation conducted last year.
The Guidelines are now available on the SC website at https://www.sc.com.my/regulation/guidelines/recognizedmarkets .
