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Malaysia: crypto & digital assets regulation

Regulated

VASP licensing under SC Malaysia; Digital Asset Exchange framework with capital and competency rules

Lead regulator:
Securities Commission Malaysia
Key law:
Capital Markets and Services Act 2007 (CMSA)
Last updated:
2026-07-12

Digital asset exchanges (DAXs) are regulated by the Securities Commission Malaysia (SC) under the Capital Markets and Services Act 2007. The SC has established a licensing framework for DAX operators, requiring adherence to guidelines on market integrity, investor protection, and anti-money laundering standards.

Recent amendments in 2026 have strengthened the regulatory framework by raising minimum paid-up capital requirements for DAXs and enhancing competency rules for key personnel. The SC has also introduced a Liberalised Listing Framework to facilitate the sustainable growth of digital assets and align with institutional standards.

The regulatory scope extends to digital currency Exchange-Traded Funds (ETFs), with revised guidelines facilitating their offering and defining related terms. Additionally, wholesale funds are permitted to invest in digital assets under specific frameworks, indicating a structured approach to market integration.

Who regulates

  • Securities Commission Malaysia

    Primary regulator for digital asset exchanges and digital currency ETFs

    [1][2][3]

  • National Coordination Committee to Counter Money Laundering

    Issues risk assessments for virtual assets regarding ML/TF/PF

    [4]

Core laws & rules

  • Capital Markets and Services Act 2007 (2007)

    The primary legislation under which the Securities Commission Malaysia regulates capital market activities, including digital asset exchanges.

  • Guidelines on Recognized Markets (2026)

    Revised guidelines strengthening the regulatory framework for Digital Asset Exchanges, introducing a Liberalised Listing Framework.

    [1]

  • Guidelines on Exchange-Traded Funds (2026)

    Revised guidelines facilitating the offering of digital currency ETFs and enhancing the regulatory framework for these products.

    [3]

Licensing & registration

  • Digital Asset Exchange (DAX)

    Operators must obtain a license from the SC to operate a digital asset exchange, adhering to guidelines on market resilience and institutional standards.

    [2]

Restrictions & warnings

  • DAX operators face raised minimum paid-up capital requirements and enhanced competency rules for key persons.

    [2]

  • Virtual assets are subject to money laundering, terrorism financing, and proliferation financing risk assessments.

    [4]

Direction of travel

  • The regulatory direction favors sustainable growth and institutionalization of digital assets, with liberalized listing frameworks and expanded investment avenues for wholesale funds.

    [1][5]

Sources

  1. Summary of Amendments to the Guidelines on Recognized Markets · 2026-05-20
  2. Frequently-Asked Questions on Digital Asset Exchange Framework · 2026-05-20
  3. Summary of Amendments to the Revised Guidelines on Exchange-Traded Funds (6th Revision) · 2026-02-27
  4. Virtual Asset Risk Assessment (VARA) 2024 Executive Summary · 2024-12-20
  5. Summary of Amendments to Revised Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework · 2023-09-06

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This guide is compiled automatically from 5 primary-source documents published by Malaysia's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.