Malaysia settled its classification question early: a 2019 prescription order deems digital currencies and digital tokens securities for purposes of the Capital Markets and Services Act, putting the Securities Commission in charge. Exchanges operate as Recognized Market Operators under SC guidelines, token offerings run through registered IEO platforms, and custodians require registration; Bank Negara Malaysia maintains that crypto is not legal tender and polices payment and AML angles. Enforcement against unlicensed international platforms has been steady.
The 2025–2026 direction is measured liberalization. Revised SC guidelines for digital asset exchanges took effect May 20, 2026, speeding up product approvals while tightening client-asset, governance, and shareholding standards and bringing exchanges into the Financial Markets Ombudsman Service, and the central bank is running ringgit stablecoin and tokenized deposit pilots.
The instruments
Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019
Prescribes qualifying digital currencies and tokens as securities, activating the CMSA's licensing, offering, and market-conduct machinery; SC guidelines govern exchanges (RMOs), IEO platforms, and digital asset custodians.