Kuala Lumpur, Malaysia – Malaysia’s financial regulator, the Securities Commission Malaysia (SC), is proposing a significant shift in how certain cryptocurrencies are listed on digital asset exchanges. The new framework, currently open for public consultation, could allow exchanges to list specific digital assets without requiring prior approval from the regulator.
Liberalised Framework for Faster Listings
According to a public announcement on Monday, the SC is considering a more flexible approach to digital asset listings. Under the proposed rules, exchanges could list tokens that meet defined eligibility criteria without obtaining individual clearance from the Commission.
“This aims to accelerate time-to-market, increase operator accountability, and widen product offerings,” the SC stated. The regulator believes this approach will better support market efficiency while holding exchanges responsible for their listing decisions.
To qualify, digital assets must have undergone a publicly disclosed security audit and must have been actively traded for at least one year on a platform that complies with the standards set by the Financial Action Task Force (FATF).
Exchanges Held Accountable for Listings
While the regulator may step back from direct approvals, the proposed rules will place greater responsibility on exchanges. Operators will need to implement robust internal processes to evaluate the eligibility and risks of each digital asset before listing it.
Malaysia’s Securities Commission’s consultation paper. Source: Securities Commission
The SC has indicated that the exchanges must ensure the digital assets are secure, reputable, and have a verifiable track record. This approach reflects a broader trend in the crypto industry, where regulators are moving towards frameworks that balance innovation with investor protection.
Consultation on High-Risk Assets
As part of the public consultation, the SC is seeking feedback on whether certain high-risk assets should be allowed for trading. Among the digital assets under scrutiny are privacy coins such as Monero (XMR), known for their enhanced privacy features.
“The lack of transparency aspect in certain digital assets appeals to individuals involved in unlawful conduct, which may result in increased risks of money laundering and terrorism financing,” the SC warned.
Privacy coins have long been controversial due to their potential to obscure transaction data, raising compliance concerns among global regulators.
Memecoins and Low-Demand Tokens Also Under Review
The SC is also gathering opinions on other types of digital assets, including memecoins—cryptocurrencies inspired by internet culture or trends. These coins often experience sharp price swings, making them highly volatile and potentially risky for retail investors.
Additionally, the Commission is evaluating the risks associated with “nascent utility tokens,” or tokens with limited market demand and adoption. These assets, often launched for specific projects or platforms, may pose challenges in terms of valuation, liquidity, and investor protection.
Public Feedback Period Open
The SC has encouraged crypto industry players, financial institutions, and the general public to participate in the consultation process. The feedback collected will help shape the final framework and determine which types of digital assets can be included in the streamlined listing process.
This move by the Malaysian regulator signals a more proactive stance in adapting to the evolving global crypto landscape while prioritising market integrity and consumer safety.
