Malaysia Proposes New Framework to Boost Digital Asset Exchange Efficiency

The Securities Commission of Malaysia has proposed a new regulatory framework for Digital Asset Exchanges (DAX), aiming to enhance market efficiency and investor protection. The consultation document, released on July 1, 2025, seeks to streamline the listing process for digital assets by eliminating the need for prior approval if certain minimum qualifications are met. This move is expected to reduce listing times and bolster market efficiency.

The proposed changes also include tighter governance measures, such as asset segregation requirements and higher capital thresholds for DAX operators. These measures are designed to enhance the financial integrity and operational resilience of exchanges, thereby increasing market confidence. The consultation period for these proposals runs until August 11, 2025, during which the commission will gather public input to refine the regulatory framework.

The Securities Commission Malaysia emphasized the importance of industry feedback in shaping a fit-for-purpose regime. The proposed regulatory improvements are part of ongoing efforts to strengthen digital asset regulatory frameworks, with a focus on enhancing exchange governance and accountability. The commission's initiative underscores its commitment to creating a robust and secure digital asset ecosystem that can attract both local and international participants.

Similar regulatory overhauls in other regions have previously led to increased transparency and institutional participation, proving beneficial in stabilizing markets post-exchange failures. The proposed changes in Malaysia are expected to lead to more resilient financial frameworks, improved investor confidence, and market stability, boosted by higher compliance among DAX platforms. The commission's proactive approach to regulatory reform is aimed at fostering a dynamic and responsive market environment that can adapt to the evolving needs of the digital asset industry.