Regulatory AlertsMalaysia: fintech & payments regulation
RegulatedBNM regulates payments; SC regulates capital markets; dual-regime fintech landscape
- Lead regulator
- Bank Negara Malaysia (BNM)
- Also involved
- Securities Commission Malaysia (capital markets/digital assets) · Personal Data Protection Department (data)
- Core law
- Financial Services Act 2013 (FSA) & Payment Services Act 2019 (PSA)
- Entry capital
- RM 1,000,000 (Payment Agent)
- Approval timeline
- 3-6 months for BNM payment licenses; variable for SC
- Customer assets
- Segregated trust accounts required for customer funds
- Data protection
- Personal Data Protection Act 2010 · PDPA Department
- Sandbox
- Yes - Regulatory Sandbox
Malaysia operates a dual-regulatory framework for fintech. Bank Negara Malaysia (BNM) is the primary supervisor for payment services, e-money, and money transfers under the Payment Services Act 2019. The Securities Commission Malaysia (SC) regulates capital market activities, including digital assets and crowdfunding, under the Capital Markets and Services Act 2007. The regulatory direction is towards comprehensive licensing for payment service providers (PSPs) and enhanced oversight of digital asset exchanges.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicencePayment Service Provider (PSP) License Requires segregation of customer funds and fit-and-proper checks. | RM 1,000,000 (Payment Agent) | 3-6 months | Bank Negara Malaysia |
| E-money & wallet issuance | LicenceE-Money Issuer License Higher capital requirements for e-money issuers compared to payment agents. | RM 5,000,000 | 3-6 months | Bank Negara Malaysia |
| Domestic money transfer | LicenceDomestic Money Transfer Service License Covers domestic money transfer services under the PSA. | RM 1,000,000 | 3-6 months | Bank Negara Malaysia |
| Cross-border remittance | LicenceCross-Border Money Transfer Service License Requires AML/CFT compliance and cross-border agreements. | RM 1,000,000 | 3-6 months | Bank Negara Malaysia |
| Agent network | LicencePayment Agent License Lowest tier for payment processing and agent services. | RM 1,000,000 | 3-6 months | Bank Negara Malaysia |
| Open banking / account information | Uncertainverify with regulator BNM is developing open banking frameworks; no specific license yet. | — | — | — |
| Foreign-exchange services | LicenceForeign Exchange Dealer License FX services are regulated under the PSA as payment services. | RM 1,000,000 | 3-6 months | Bank Negara Malaysia |
New — what changed recently
- 2026-05-20Guidelines on Recognized Markets — Revised guidelines for Digital Asset Exchanges and Recognized Market Operators, raising capital requirements and enhancing competency rules.
- 2024-02-05P2P Financing Framework FAQs — Clarified registration requirements and obligations for P2P financing platforms under the Recognized Market Operator framework.
- 2022-12-19Bond Pricing Agencies Guidelines — Updated registration guidelines for bond pricing agencies, aligning with the Electronic Application System (EASy).
Market-entry checklist
- 1Determine primary regulatorIdentify if the activity falls under BNM (payments) or SC (capital markets/digital assets).
- 2Meet minimum capitalEnsure paid-up capital meets the specific tier (e.g., RM 1m for Payment Agent, RM 5m for E-Money).
- 3Establish segregated accountsSet up trust accounts for customer funds as required by BNM for payment services.
- 4Submit application to regulatorPrepare and submit the application form with supporting documents to BNM or SC.
- 5Implement AML/CFT controlsEnsure robust Anti-Money Laundering and Counter-Financing of Terrorism frameworks are in place.
- 6Obtain fit-and-proper approvalEnsure key personnel and directors meet the fit-and-proper criteria set by the regulator.