KUALA LUMPUR: The Securities Commission Malaysia (SC) has enhanced the Guidelines on Recognised Markets to bolster the competitiveness of regulated digital asset exchange (DAX) operators and fortify investor protection and the overall resilience of the digital asset segment.
The enhancement aligns the local digital asset landscape with global developments amid growing institutional participation in this asset class, the regulator said.
"The revised guidelines aimed at speed up product launches on regulated DAX platforms, while holding DAX operators to higher standards of accountability.
"(They will also) fortify investor protection by strengthening client asset safeguards and enhancing the governance framework and enhance operational resilience,” it said in a statement today.
In addition, the guidelines will enhance the operational resilience of regulated DAX platforms by raising requirements for financial stability, shareholding and management proficiency, it said.
The SC said DAX operators will be included as members of the Financial Markets Ombudsman Service in 2026, giving investors access to a formal dispute resolution avenue.
Furthermore, the regulator 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 April 14, 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 between RM5.8 trillion to RM6.3 trillion by 2030,” it said.
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 per cent 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,” it said.
The amendments in the guidelines take effect today.
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. - Bernama
