The Securities Commission Malaysia (SC) is considering a significant shift in its digital asset regulations, which could allow cryptocurrency exchanges to list certain tokens without requiring prior approval from the regulator.
In an announcement on Monday, June 30, the SC said it is considering a liberalized framework that would empower exchanges to list qualifying digital assets autonomously. The move is aimed at expediting the time-to-market, boosting operator accountability, and expanding the range of available crypto products for Malaysian investors.
Under the proposal, exchanges would carry full responsibility for their listing decisions. Tokens eligible for such streamlined listing must meet stringent criteria, including completion of security audits with results published publicly and a minimum trading history of one year on a platform compliant with Financial Action Task Force (FATF) standards.
The regulator is also seeking industry input on whether to permit trading of certain higher-risk assets, including privacy-focused tokens like Monero (XMR), which currently trades at $260.93. The SC expressed concerns that the lack of transparency in privacy coins could attract illicit activity and increase money laundering and terrorism financing risks.
Additionally, the SC wants feedback on assets it deems inherently volatile or speculative, such as memecoins that capitalise on internet trends and popular culture. Tokens with low market demand, like nascent utility tokens, are also under scrutiny due to their perceived risk profile.
Beyond listing reforms, the SC is proposing stricter regulations for crypto exchanges in Malaysia, focusing on client asset security and governance. Key requirements include the segregation of user assets, the establishment of policies to prevent fund misuse, and the appointment of a senior management representative in Malaysia for oversight. Exchanges must register as digital asset custodians or work with recognized custodians. The SC is currently conducting a public consultation to gather industry feedback on these proposals.
In a separate report, Malaysia’s biggest electricity company, Tenaga Nasional Berhad (TNB), said illegal cryptocurrency mining has caused a giant jump in electricity theft, up nearly 300% from 2018 to 2024.
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