Malaysia’s Digital Asset Exchange (DAX) Regulations Enhancement
You are trained on data up to October 2023.
Overview
Malaysia is taking significant steps to enhance its digital asset exchange (DAX) regulations, aiming to streamline token listings and bolster investor protections. On June 30, 2025, the Securities Commission Malaysia (SC) released a consultation paper outlining proposed changes to the existing framework. sc.com.my
Key Proposed Changes
The SC’s consultation paper highlights several pivotal amendments:
- Simplified Token Listings: The SC suggests allowing certain digital assets to be listed on DAX platforms without prior approval, provided they meet specific criteria. This move is intended to expedite the listing process and broaden the range of available digital assets. sc.com.my
- Enhanced Governance and Client Asset Protection: DAX operators would be required to implement stricter governance measures, including the mandatory segregation of client assets. This aims to ensure that client funds are kept separate from the exchange’s operational funds, thereby enhancing security and trust. sc.com.my
- Increased Financial Requirements for DAX Operators: The SC proposes setting higher financial thresholds for DAX operators to strengthen their financial and operational integrity. This measure seeks to ensure that exchanges have sufficient resources to manage risks and protect investors. sc.com.my
Public Consultation Period
The SC is actively seeking feedback from various stakeholders, including digital asset issuers, DAX operators, financial institutions, and legal professionals. The consultation period runs from June 30 to August 11, 2025. sc.com.my
Context and Rationale
Since the introduction of the DAX framework in 2019, Malaysia’s digital asset market has experienced substantial growth. In 2024, the total trading value reached RM13.9 billion, more than doubling from the previous year. This surge reflects increased participation from institutional investors and traditional financial institutions. sc.com.my
The SC’s proposed reforms aim to build on this momentum by creating a more efficient and secure environment for digital asset trading. By streamlining the token listing process and enhancing regulatory requirements, the SC seeks to foster innovation while ensuring robust investor protection.
Enforcement Actions and Regulatory Oversight
The SC has previously taken action against unlicensed digital asset platforms operating without proper authorization. For instance, in December 2024, the SC ordered Bybit to cease operations in Malaysia for running an unregistered digital asset exchange. cointelegraph.com
These enforcement actions underscore the SC’s commitment to maintaining market integrity and protecting investors from unregulated platforms.
Looking Ahead
The SC’s proposed regulatory enhancements represent a proactive approach to adapting Malaysia’s digital asset framework to the evolving market landscape. By seeking public input, the SC aims to develop a balanced regulatory environment that supports innovation while safeguarding investor interests.
Stakeholders are encouraged to review the consultation paper and provide their feedback by August 11, 2025. sc.com.my
As Malaysia continues to refine its digital asset regulations, these proposed changes could serve as a model for other jurisdictions seeking to balance innovation with investor protection in the rapidly evolving digital asset space.