Malaysia’s financial watchdog, the Securities Commission (SC), has unveiled a proposal to streamline the process of listing digital assets on cryptocurrency exchanges. This move could mark a significant shift in the country’s regulatory landscape for crypto markets, as it would allow some cryptocurrencies to be listed without prior regulatory approval.
The regulator is now seeking public and industry feedback on the proposal, which is aimed at accelerating the listing process, boosting accountability among exchange operators, and expanding product offerings available to investors.
Faster Listings, Greater Accountability
Under the new proposal, cryptocurrency exchanges would be permitted to list certain digital assets automatically, provided they meet specific conditions. This means that exchanges would not need to wait for the SC’s explicit approval before listing qualifying assets.
To qualify for automatic listing, the proposed rules require that digital assets must have completed a full security audit with publicly available results. Additionally, the asset must have been traded for at least 12 months on a platform that is compliant with Financial Action Task Force (FATF) regulations.
BTC/USD, 14-year chart.
The SC explained that these changes are designed to reduce the time-to-market for new crypto products while also holding exchanges directly responsible for the assets they choose to list.
Industry Input Sought on High-Risk Assets
While the proposal promises a more liberal framework for asset listings, the SC is exercising caution with certain categories of digital tokens that are considered high-risk. The regulator is particularly interested in industry opinions on whether these assets should be eligible for trading on local platforms.
One such category includes privacy-focused cryptocurrencies, such as Monero (XMR), which are designed to offer enhanced anonymity. The SC noted that such tokens pose significant challenges to transparency, which could make them attractive to individuals involved in illicit activities. As a result, they may increase the risks of money laundering and terrorism financing.
Concerns Around Memecoins and Volatility
The SC is also soliciting feedback on so-called “memecoins” — digital tokens that gain popularity through internet culture and social media trends. These coins often see extreme price volatility and may lack a stable or sustainable foundation.
While memecoins have gained traction among retail investors due to their viral appeal, regulators worldwide have expressed concerns over their speculative nature. The SC is now asking whether such tokens should be allowed on Malaysian exchanges under the new framework.
Low-Demand Utility Tokens Under Review
Another category flagged by the SC includes nascent utility tokens — digital assets that offer access to specific products or services but currently face low market demand. These tokens often belong to early-stage blockchain projects and may be highly speculative due to uncertain long-term value or usability.
Bitcoin wallet “12tLs.” Source: Lookonchain
The SC is wary of the potential risks tied to such assets, particularly their susceptibility to manipulation and low liquidity. Public and industry input will help determine whether these tokens should be subject to stricter criteria or excluded entirely from fast-track listing provisions.
Next Steps for the Proposal
The Securities Commission is currently gathering feedback and has not yet provided a timeline for when the proposed changes could come into effect. If adopted, the revised framework would mark a significant development for Malaysia’s crypto ecosystem, offering a more agile and market-responsive approach while maintaining oversight on high-risk assets.
The consultation process underscores Malaysia’s efforts to strike a balance between fostering innovation and ensuring investor protection in the rapidly evolving digital asset space.
