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The Securities Commission Malaysia (SC) has come up with a new plan to make it easier for some cryptocurrencies to be listed on local exchanges. This is meant to encourage innovation and grow Malaysia’s digital asset sector.
On Monday, the regulator said it wanted to hear from the public about new rules that would let cryptocurrency exchanges list certain digital assets without getting permission from the regulator first.
This shows that the agency is moving toward a more flexible and market-driven way of regulating digital assets.
Speeding up access to the market and holding people accountable
The SC’s plan aims to speed up the time it takes for digital assets to hit the market, make crypto exchange operators more responsible, and provide investors more options.
The proposed framework would allow digital assets that meet certain criteria to be listed on exchanges without needing the SC’s explicit permission.
This reform should make it easier for exchanges to adapt to developments in the market and new technology more quickly by cutting down on red tape.
Digital assets must meet strict conditions in order to be eligible for this simplified listing process.
These include passing security assessments with results that are available to the public and being traded for at least a year on a platform that meets the Financial Action Task Force (FATF) criteria.
The FATF is an international group that works to stop money laundering and terrorism financing.
The SC wants to strike a balance between protecting investors and encouraging innovation by only allowing assets with an established track record and strong security measures to skip the normal approval process.
The SC stressed that this modification will make crypto exchanges more responsible for their listing decisions.
The regulator said in its release, “This aims to speed up time-to-market, hold operators more accountable, and expand product offerings.” The SC wants to make the crypto sector in Malaysia more responsible and open by holding exchanges accountable.
How to Handle High-Risk Assets: Privacy Coins and Memecoins
The SC is asking for advice from the industry as part of its consultation process on whether certain high-risk digital assets should be allowed to be traded. One type of these is privacy currencies, like Monero (XMR), which are meant to give users more privacy.
As of July 1, 2025, Monero costs $261.79. The authority has warned about it since it could be used for illegal purposes. The SC said, “The lack of transparency in some digital assets appeals to people who are doing illegal things, which may make money laundering and terrorism financing more likely.”
The regulator is also looking into memecoins, which are cryptocurrencies that are often linked to online fads or pop culture, such Dogecoin or Shiba Inu. Investors should be aware that these investments are quite volatile, which means they are very risky.
The SC is also looking into “nascent utility tokens,” which are still in their early stages of development and don’t have a lot of market demand yet.
The SC wants to find a balance between encouraging new ideas and reducing risks in Malaysia’s crypto sector by getting comments on these types of assets.
Stronger rules for governance and custody
The SC wants to make the listing process more open and impose standards that are tighter for how client funds are managed and kept safe.
There would be stricter rules for crypto exchanges to follow to protect users’ money. These include rules that require separating user cash from the exchange’s operating finances to lower the risk of loss or misuse.
In case of bankruptcy, exchanges would also need to make rules and regulations to protect client assets. This would make sure that users may get their money back if an exchange goes out of business.
One of the main parts of the proposed guidelines is that crypto exchanges must choose a senior manager in Malaysia to be in charge of running digital wallets.
The goal of this strategy is to make people more accountable and make sure that there is local monitoring to handle the dangers that come with storing and transferring digital assets.
The SC said, “This would help reduce the risk of customers losing or misusing their assets and make it easier for digital assets to move.”
Also, exchanges that hold user assets will have to register as digital asset custodians with the SC or work with a registered custodian to offer these services. This measure is in line with global trends toward tougher oversight of crypto custody, as regulators try to shield investors from the risks that come with centralized exchanges.
Solving Malaysia’s Crypto Problems
The SC’s plan comes at a time when Malaysia’s crypto industry is having problems, like unlawful crypto mining activities that are happening because of unclear rules.
Recent news reports have shown that there has been a rise in illegal mining activities, which have put a strain on the country’s energy resources and led to requests for clearer rules.
The SC’s suggested changes could help fix these problems by making the rules for digital asset activities clearer and more organized.
The SC wants to make it easier to list companies while making governance and custody standards stricter. This would establish a regulatory environment that protects investors while encouraging innovation.
The proposed revisions show that Malaysia wants to be a strong competitor in the global digital asset market, where nations like Singapore and Thailand have already made a lot of progress.
Next Steps Based on Industry Feedback
The SC has asked anyone with a stake in the matter, such as crypto exchanges, investors, and industry experts, to give their thoughts on the proposed framework. The consultation phase will give the regulator time to improve its guidelines based on what it learns from the industry.
This will make sure that the final framework is useful and works. Some important considerations are whether privacy coins and memecoins, which are high-risk assets, should be allowed, and how exchanges can best safeguard investors while still allowing for new ideas.
The idea is a big step toward bringing Malaysia’s crypto regulations up to date. If the new guidelines are put into place, they might bring more international crypto exchanges to the Malaysian market, make investors feel better about investing, and help digital assets become more popular. But the framework can only function if the SC can deal with worries about high-risk assets and make sure that governance and custody criteria are strictly followed.
As Malaysia moves through this changing industry, the SC’s proactive approach shows that they are dedicated to building a safe and lively crypto economy. People who have a stake in the outcome are encouraged to take part in the consultation process to help decide how the government will regulate digital assets in the future. You can send feedback through the SC’s official methods. You can find more information on its website.
