Regulatory AlertsMalaysia: crypto & digital assets regulation
RegulatedSC licenses DAXs; strict capital rules; no general crypto ban
- Lead regulator
- Securities Commission Malaysia
- Also involved
- Bank Negara Malaysia (payments/banking) · NFIU (AML/CFT)
- Core law
- Capital Markets and Services Act 2007
- Entry capital
- MYR 10m (DAX)
- Approval timeline
- 3-6 months
- Customer assets
- Segregated custody required
- Data protection
- PDPA 2010 · Personal Data Protection Department
- Sandbox
- Yes - Regulatory Sandbox
Digital asset exchanges (DAXs) are regulated by the Securities Commission Malaysia (SC) under the Capital Markets and Services Act. The SC has recently raised capital requirements and enhanced competency rules for DAX operators. Other activities like token issuance are regulated under specific guidelines for unlisted capital market products or ETFs. Mining and staking are not explicitly regulated by the SC but are subject to general business laws.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Exchange / trading platform | LicenceDigital Asset Exchange (DAX)[1] Capital raised; competency rules enhanced | MYR 10m | 3-6 months | Securities Commission Malaysia |
| Custody of client assets | LicenceDigital Asset Exchange (DAX)[1] Custody is part of DAX licence | MYR 10m | 3-6 months | Securities Commission Malaysia |
| Token issuance / public offering | LicenceCapital Market Services Licence[2] Regulated under unlisted products guidelines | — | — | Securities Commission Malaysia |
| Broker-dealer / OTC desk | LicenceCapital Market Services Licenceverify with regulator Unclear if separate from DAX | — | — | Securities Commission Malaysia |
| Stablecoin issuance | Uncertainverify with regulator No specific stablecoin regime identified | — | — | — |
| Crypto payments acceptance | LicencePayment Services Licence BNM regulates payment services | — | — | Bank Negara Malaysia |
| Mining / staking services | Unregulated Not explicitly regulated by SC | — | — | — |
| Advisory / portfolio management | LicenceCapital Market Services Licence Regulated under CMS Act | — | — | Securities Commission Malaysia |
New — what changed recently
- 2026-05-20Guidelines on Recognized Markets — Liberalised listing framework for DAXs
- 2026-05-20FAQs on DAX Framework — Raised minimum paid-up capital for DAXs
- 2026-03-02Guidelines on ETFs (6th Revision) — Facilitated digital currency ETFs
Market-entry checklist
- 1Apply for DAX LicenceSubmit application to SC with MYR 10m capital
- 2Meet Competency RulesEnsure key persons meet enhanced competency standards
- 3Implement AML/CFTAdhere to NFIU guidelines and VARA 2024
- 4Segregate Customer AssetsEnsure strict segregation of client funds