Malaysian regulator proposes easing crypto asset listing process

Malaysia's Securities Commission (SC) is seeking public feedback on a proposal that would allow certain digital assets to be listed on exchanges without prior approval, aiming to expedite market entry and broaden product offerings. This initiative is part of broader changes to the digital asset exchange (DAX) regulatory framework, which seeks to improve market efficiency, investor protection, and regulatory resilience.

Certain tokens could be listed on regulated DAX platforms without explicit SC approval, provided they meet predefined eligibility standards. This aims to cut down regulatory delays and enable exchanges to react more swiftly to market demands.

The new rules would place greater responsibility on crypto exchanges for their decisions to list specific assets. Listed digital assets would need to have undergone public security audits and have been bought sold for at least a year on a Financial Action Task Force-compliant platform.

The SC also plans to introduce stricter governance obligations, requiring DAX operators to separate client assets from their operational funds to prevent misuse and build trust . Operational control standards would also be upgraded to reflect the unique risks of buying selling digital assets, including more stringent oversight of internal processes and improved risk management systems.

Licensed DAX operators may face increased financial thresholds to reinforce their operational and financial resilience.

The SC is also soliciting industry input on whether to permit the buying selling of higher-risk assets, due to concerns about their potential use in illicit activities like money laundering and terrorism financing . Additionally, the regulator is seeking comments on assets influenced by internet trends or popular culture due to their heightened volatility, and nascent utility tokens due to low market demand.

These proposed reforms follow a significant increase in digital asset buying selling in Malaysia, which reached RM13.9 billion ($2.9 billion) in 2024, more than double than 2023.

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