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: the SC consulted in mid-2025 on relaxing listing requirements for licensed exchanges and expanding eligible products, while the central bank studies asset tokenization and a broader capital markets digital strategy.
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.