Malaysia Shifts Crypto Token Approval to Exchanges
Malaysia will allow local exchanges to list crypto tokens independently. The Securities Commission Malaysia (SC) announced this plan at the Finternet 2025 Asia Digital Finance Summit. Wong Huei Ching, Executive Director of Digital Strategy and Innovation at SC, said the new rules will take effect next year.
The updated framework speeds up token approvals and expands the range of available assets. Exchanges will approve tokens using their own internal controls instead of waiting for separate regulator approval. Wong emphasized that stronger risk management and investor protection are mandatory under the new system.
New Rules Build on Regulatory Experience Since 2019
Malaysia started regulating cryptocurrencies as securities around 2019. This gave the SC valuable experience in understanding crypto platforms and risks. Wong said the growing investor interest calls for more flexible and faster token listing procedures.
The proposed changes, detailed in Public Consultation Paper No. 3/2025, transfer approval authority to Recognised Market Operators (licensed exchanges). Exchanges must conduct strict due diligence, including:
- Verifying trading history on compliant markets
- Confirming protocol audits
- Assessing anti-money laundering (AML) controls
- Reviewing technological risks
- Establishing clear delisting procedures
Exchanges must also improve governance standards to meet these obligations.
Faster Listings, Increased Accountability, and Institutional Interest
The SC aims to reduce long token approval delays that once took months. The new rules put listing responsibility on exchanges, which must enhance internal controls, listing committees, and documentation. This change is expected to diversify the market and attract more regional token issuers.
Wong stressed the move is not deregulation. Instead, exchanges must boost investor protection through stronger wallet arrangements, capital requirements, and operational controls. This approach may encourage institutional participation.
In line with these plans, Dubai-based Fasset received a temporary Shariah-compliant digital banking license in Malaysia on October 7, 2025. Fasset plans to offer stablecoin-based banking products and targets US$24 billion in transaction volume by late 2026.
Malaysia strives to build a larger, safer crypto market with more tokens and stronger oversight. The country aims to increase investor confidence and compete regionally in digital finance.
