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Malaysia

Malaysia regulates crypto as securities: five SC-registered exchanges, offshore giants shut out, and BNM piloting ringgit stablecoins.

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5SC-registered digital asset exchanges
RM17.14bnTrading value on regulated exchanges in 2025, up 23% on 2024
RM15mMinimum paid-up capital for a DAX operator

Malaysia decided early that crypto would live inside securities law rather than beside it.

Bank Negara Malaysia (BNM) said in January 2014 that bitcoin is not legal tender, and in February 2018 it made digital currency exchangers reporting institutions under the anti-money laundering law.

In December 2018 BNM and the Securities Commission Malaysia (SC) agreed that the SC would regulate token offerings and trading venues.

Read the full story

The turning point came on 15 January 2019, when a ministerial order prescribed qualifying digital currencies and digital tokens as securities under the Capital Markets and Services Act 2007.

Exchanges now needed SC registration as recognised market operators, and in June 2019 only Luno, SINEGY and Tokenize made the cut.

The SC added regimes for initial exchange offerings and digital asset custodians in October 2020, then ordered Binance (2021), Huobi (2023) and Bybit (2024) to stop serving Malaysians.

Today the market is small, onshore and growing.

Five DAX operators were registered as of July 2026: HATA Digital, Luno Malaysia, MX Global, SINEGY DAX and Kinetic DAX.

Trading on them reached RM17.14 billion in 2025, up 23% on 2024.

Revised rules effective 20 May 2026 let exchanges list tokens without prior SC approval, but raised paid-up capital to RM15 million, require at least 80% of client assets in offline storage and ban privacy tokens.

For builders, the open frontier is stablecoins and tokenisation, and BNM is running that track.

Its Digital Asset Innovation Hub is testing a ringgit stablecoin for business settlement with Standard Chartered and Capital A, plus tokenised deposits at Maybank and CIMB, with policy clarity promised by end-2026.

Tax is relatively light: there is no capital gains tax on crypto, but trading, mining and business gains are taxed as income.

Who regulates

  • SCSecurities Commission Malaysia

    In charge of

    Malaysia's capital markets regulator under the Capital Markets and Services Act 2007. It licenses market intermediaries, approves securities offerings and enforces securities law.

    On crypto

    Regulates crypto as securities since the January 2019 Prescription Order and registers exchanges, IEO operators and custodians (5 exchanges as of July 2026). Its May 2026 rules let exchanges list tokens without its prior approval, and it ordered Binance (2021), Huobi (2023) and Bybit (2024) to stop serving Malaysians.

    SC website
  • BNMBank Negara Malaysia

    In charge of

    Malaysia's central bank. It sets monetary policy, regulates banks, insurers and payment systems, and is the competent authority for anti-money laundering law.

    On crypto

    Says crypto is not legal tender and since 2018 has treated digital currency exchangers as AML reporting institutions. Its Digital Asset Innovation Hub is piloting ringgit stablecoins and tokenised deposits with Standard Chartered, Capital A, Maybank and CIMB, with policy clarity promised by end-2026.

    BNM website
  • LHDNInland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri)

    In charge of

    Malaysia's tax authority. It assesses and collects income tax, real property gains tax and stamp duty, and issues public rulings and guidelines on how tax law applies.

    On crypto

    Its guidelines on digital currency transactions, second edition of December 2025, say gains are taxed as income only if they are revenue in nature under the badges of trade, and that crypto disposals fall outside capital gains tax. They also cover mining, crypto payments and airdrops.

    LHDN website

What to watch

  • BNM's promised clarity on ringgit stablecoins and tokenised deposits by end-2026, informed by the Digital Asset Innovation Hub pilots.
  • A final SC framework for tokenised capital market products, following the 2025 consultation and Khazanah's RM100 million tokenised sukuk pilot.
  • How the liberalised DAX listing framework works in practice, including any stablecoin listings, which need prior consultation with the monetary regulator.
  • DAX operators joining the Financial Markets Ombudsman Service in 2026, and further SC action against unregistered offshore exchanges.

Quick answers

Who regulates crypto in Malaysia?

Three authorities shape crypto rules in Malaysia. SC (Securities Commission Malaysia): registers and supervises digital asset exchanges, IEO operators and digital asset custodians under securities law. BNM (Bank Negara Malaysia): central bank and AML/CFT competent authority; leads ringgit stablecoin, tokenised deposit and CBDC work. LHDN (Inland Revenue Board of Malaysia (Lembaga Hasil Dalam Negeri)): issues income tax guidance on digital currency transactions.

Do crypto exchanges need a licence in Malaysia?

Yes, under a dedicated regime. Five SC-registered DAX operators under the CMSA; May 2026 rules raised paid-up capital to RM15 million. The main licences are Recognized Market Operator registration: Digital Asset Exchange (RMO-DAX) from SC, held by 5 as of 20 Jul 2026; Initial Exchange Offering (IEO) operator registration from SC, held by 2 as of 5 Oct 2026; and Digital Asset Custodian (DAC) registration from SC, held by 3 as of 5 Oct 2026. Four Pillars rates exchange licensing in Malaysia as comprehensive (reviewed 5 Oct 2026).

Are stablecoins regulated in Malaysia?

Not fully yet: the regime is being built. No issuance regime yet; BNM is piloting ringgit stablecoins and promises policy clarity by end-2026. The most recent official text is Digital Asset Innovation Hub (DAIH) (Bank Negara Malaysia (BNM), 30 Jul 2026, guidance). Four Pillars rates its stablecoin regime in Malaysia as developing (reviewed 5 Oct 2026).

How is crypto taxed in Malaysia?

No capital gains tax; trading and mining gains are taxed as income. Four Pillars rates tax clarity in Malaysia as partial (reviewed 5 Oct 2026).

Can real-world assets be tokenised in Malaysia?

Not fully yet: the regime is being built. SC consulted on tokenised securities in 2025; Khazanah priced a RM100m tokenised sukuk pilot in 2026. Four Pillars rates tokenisation and real-world assets in Malaysia as developing (reviewed 5 Oct 2026).

What changed most recently in Malaysia's crypto rules?

20 May 2026: Revised DAX rules take effect. The SC removed its prior concurrence for token listings and tightened capital, shareholding and custody rules. 28 Apr 2026: First tokenised sukuk priced. Khazanah, working with the SC, priced a RM100 million one-year tokenised sukuk pilot.

What should companies watch next in Malaysia?

BNM's promised clarity on ringgit stablecoins and tokenised deposits by end-2026, informed by the Digital Asset Innovation Hub pilots. A final SC framework for tokenised capital market products, following the 2025 consultation and Khazanah's RM100 million tokenised sukuk pilot. How the liberalised DAX listing framework works in practice, including any stablecoin listings, which need prior consultation with the monetary regulator.

Timeline

  1. Revised DAX rules take effect

    The SC removed its prior concurrence for token listings and tightened capital, shareholding and custody rules.

  2. First tokenised sukuk priced

    Khazanah, working with the SC, priced a RM100 million one-year tokenised sukuk pilot.

  3. Ringgit stablecoin and tokenised deposit pilots onboarded

    BNM admitted Standard Chartered with Capital A, Maybank and CIMB into the hub for wholesale payment pilots.

  4. BNM publishes asset tokenisation discussion paper

    The paper set out a co-creation roadmap from proofs of concept to live pilots and future policy.

  5. BNM launches Digital Asset Innovation Hub

    The hub was set up to test blockchain use cases such as ringgit stablecoins and tokenised deposits.

  6. Bybit exits after SC enforcement

    The SC reported that Bybit had complied with directives to shut its Malaysian-facing platforms and stop advertising.

  7. SC orders Binance out of Malaysia

    The SC publicly reprimanded Binance and directed it to disable its website and apps for Malaysian users.

  8. IEO and custodian regimes take effect

    Revised Guidelines on Digital Assets set rules for initial exchange offering platforms and digital asset custodians.

  9. First three exchanges registered

    The SC registered Luno, SINEGY and Tokenize as recognised market operators for digital asset exchanges.

  10. Crypto prescribed as securities

    The Prescription Order brought qualifying digital currencies and tokens under the Capital Markets and Services Act 2007.

  11. Crypto exchangers become AML reporting institutions

    BNM's Sector 6 policy document took effect, applying AMLA duties to anyone exchanging digital currency for money.

  12. BNM says bitcoin is not legal tender

    The central bank said it does not regulate bitcoin and warned the public about its risks.

Cite this page: Four Pillars Asia Digital Asset Policy Center, “Malaysia crypto regulation”, reviewed 5 Oct 2026, https://policy.4pillars.io/malaysia. Free to reuse with attribution; also as markdown and JSON.

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