Malaysia to Ease Crypto Listings, Boost Innovation

Malaysia’s financial regulator is proposing new guidelines to ease the listing process for digital assets on regulated exchanges.

Overview

In a Monday announcement, the regulator revealed it is exploring a more flexible framework for listing certain digital assets on exchanges. Under the proposed guidelines, assets that meet predefined criteria could be listed without direct regulatory approval. 

The announcement said,

“This aims to accelerate time-to-market, increase [crypto exchange] operator accountability and widen product offerings.”

The Securities Commission Malaysia (SC) hopes the move will encourage innovation, attract crypto firms, and boost the country’s standing as a hub for digital finance in Southeast Asia.

New Guidelines Aim to Simplify Crypto Listings

The Securities Commission Malaysia has released a consultation paper proposing a streamlined process for digital asset listings on local Digital Asset Exchanges (DAXs). The extensive approval and vetting procedures require significant regulatory oversight before a token can be listed. The new proposal introduces a framework where DAX operators can assess and approve crypto asset listings, provided they follow specific governance, disclosure, and risk management requirements.

This approach would shift the responsibility of token assessment from the regulator to the exchange operators. To maintain investor protection, DAXs must establish internal committees to evaluate the risks of proposed tokens, including their technology, use case, market maturity, and compliance with anti-money laundering (AML) standards.

Under the proposed changes, tokens that qualify as securities or derivatives will still require SC approval. However, utility tokens and non-security crypto assets can be considered for listing directly by the exchanges, streamlining the process significantly.

Boosting Innovation and Market Competitiveness

The SC says the new framework is part of a broader effort to support fintech innovation while maintaining appropriate regulatory safeguards. The goal is to reduce bottlenecks and delays that may deter new projects from launching in Malaysia or seeking local listings.

Crypto advocates in Malaysia have welcomed the move. Industry players argue that a more agile listing process could encourage the development of local blockchain projects and attract foreign token issuers looking for regulatory clarity in Asia. It also aligns Malaysia more closely with regional competitors such as Singapore and Hong Kong, where regulators have taken a more open stance toward digital assets.

If implemented, the guidelines would make Malaysia one of the few Southeast Asian countries to permit regulated exchanges to approve token listings independently. This would put more responsibility on the exchanges but could foster a more vibrant crypto ecosystem by reducing regulatory friction.

Safeguards, Risk Monitoring, and Market Outlook

While the proposal reduces direct oversight, the SC has emphasised that robust safeguards must be in place. Exchanges will be required to implement real-time monitoring of listed assets, establish delisting procedures for underperforming or non-compliant tokens, and maintain clear disclosure standards to keep investors informed. Additionally, the SC plans to conduct periodic reviews of how DAXs apply their listing frameworks. It may intervene or require delisting if it finds that investor interests are not adequately protected.

The proposal also outlines criteria for rejecting listings, such as tokens with anonymous founders, weak technological underpinnings, or unclear economic models. The aim is to maintain market quality even as the listing gatekeeping shifts to private platforms. A public consultation period will run until mid-August 2025, during which stakeholders can submit feedback. Depending on the responses, the SC may revise and finalise the framework later this year. 

The new direction is a significant step forward for Malaysia’s crypto market. While the country has taken a cautious regulatory approach in the past, this proposal signals an evolving stance that balances the need for innovation with investor protection and market integrity. If successful, it could pave the way for a more dynamic and globally competitive digital asset sector in Malaysia.