PETALING JAYA: The Securities Commission (SC) will introduce a regulatory sandbox and enhance its regulatory framework to encourage securities tokenisation to help spur innovation in the capital market.
In a statement, the SC said it will also be collaborating with Khazanah Nasional Bhd to explore the issuance of a tokenised bond.
The three initiatives, unveiled at the SCxSC Fintech Summit 2024 starting yesterday, are aimed at promoting a responsible innovation in the country’s capital market.
In his opening address, SC chairman Datuk Mohammad Faiz Azmi said the SC is committed to fostering a thriving financial technology ecosystem in the capital market.
Recognising rapid technological advancements, the SC said it had received several proposals that did not fully fit within existing regulatory frameworks.
To address this, the SC is introducing a regulatory sandbox framework providing a controlled environment for testing innovative products and services while ensuring investor protection.
The sandbox is a regulatory tool for enhancing policies to ensure they are fit for purpose.
For example, it may allow innovative tokenised offerings to be tested within the sandbox, in line with the SC’s efforts to develop its technology-agnostic approach for tokenised securities and identify best practices.
In addition, the SC is collaborating with Khazanah Nasional, as a potential issuer, to explore how blockchain technology can enhance the efficiency of bond issuance and operations.
