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Securities Commission Malaysia lays out framework for digital asset trading

Source: Securities Commission Malysia

The Securities Commission Malaysia (SC) today amended its Guidelines on Recognized Markets to introduce new requirements for electronic platforms that facilitate the trading of digital assets.

Under the revised guidelines, any person who is interested in operating a digital asset platform is required to apply to the SC to be registered as a recognized market operator.

“The new framework is part of the SC’s efforts to promote innovation while ensuring investor protection in the trading of digital assets,” said Datuk Syed Zaid Albar, SC Chairman. He added that while there is a framework to facilitate the trading of digital assets, investors are reminded to be mindful of the risks when dealing in digital assets such as sudden price fluctuations and liquidity risks.

The amended guidelines follows the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on 15 January 2019.

Any person who is interested to operate a digital asset platform, including those operating within the current transitional period, have to submit an application to the SC by 1 March 2019.

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