Key Highlights
- Malaysia will let exchanges list crypto tokens independently, speeding approvals, expanding asset choices, and requiring stronger internal controls for safety.
- The new rules shift token approval from regulators to exchanges, demanding strict due diligence, better risk management, and clear delisting procedures.
- Fasset’s Shariah-compliant digital banking license aligns with Malaysia’s strategy, highlighting growing institutional interest and broader crypto adoption in the region.
Malaysia’s regulators are planning a change in how new crypto tokens get approved. The Securities Commission Malaysia (SC) says local exchanges will soon be allowed to list tokens by themselves.
Wong Huei Ching, the Executive Director of Digital Strategy and Innovation at the Securities Commission Malaysia (SC), shared this update at the Finternet 2025 Asia Digital Finance Summit, explaining that new rules are coming next year.
She said the goal of the new rules is to make token listings faster, offer more asset options, and help Malaysia stay competitive in global digital finance. Wong explained that exchanges will now be able to approve tokens using their own internal processes. This replaces the old setup, where every token needed separate approval from the regulator.
She also noted that the change shows Malaysia’s growing trust in its licensed exchanges and its push to connect crypto more closely with the wider financial system. However, she made it clear that exchanges must tighten their internal controls because regulators expect stronger standards, not weaker ones.
“Obviously, it comes with accountabilities,” Huei Ching noted, adding, “in doing so then we expect the exchanges to step up their control measures in terms of investor protection, like wallet arrangements like capital requirements.”
Building on half a decade’s worth of regulatory experience
Malaysia began regulating cryptocurrencies as securities around 2019, thus gaining early experience in the management of digital assets. Wong said the five to six year learning curve has helped the SC understand how crypto platforms work and the associated risks. She added that interest among investors continues to grow and people want to see more sophisticated crypto products. For this reason, the SC decided it was time to revise its rules and introduce a more flexible regime for the listing of tokens.
Under the new proposal, which has appeared in Public Consultation Paper No. 3/2025, the liberalized framework shifts decision-making power to Recognised Market Operators. In other words, these exchanges must now consider tokens against strict internal processes.
They need to verify trading history on compliant markets, confirm protocol audits, assess AML controls and review technological risks. Exchanges also need clear delisting procedures. Hence, platforms must upgrade their governance standards to meet these obligations.
Faster listings, more tokens and increased accountability
The SC wants to cut down the long wait times for getting tokens approved, which used to take months. Right now, only a few tokens are available on Malaysia’s licensed exchanges. The new system aims to fix this gap. Under the updated rules, exchanges will take full responsibility for every token they list. They will need stronger listing committees, clearer documentation, and better risk management, since investors will rely on the exchanges to do proper checks.
Additionally, this shift could attract more token issuers. The new structure offers a quicker path to market because issuers work directly with exchanges instead of regulators. Malaysia expects more regional projects to list locally. Hence, the market could diversify and expand.
Institutional push and banking collaboration
Wong said the goal is not deregulation. Instead, the SC expects exchanges to enhance investor protection. She highlighted wallet arrangements, capital requirements and operational controls. She believes stronger structures will attract institutional players. “We can now combine the credibility of a global banking institution with the innovation of a fintech insurgent that’s fully halal,” said Fasset CEO Mohammad Raafi Hossain while addressing related developments.
Moreover, the SC has been facilitating discussions between banking compliance groups and crypto platforms. Wong said both sectors need a deeper understanding to build trust. Hence, the SC promotes these engagements to align expectations and support broader market growth.
Fasset gains on Malaysia’s plan
Malaysia’s change is also in line with recent licensing progress. Dubai-based digital finance platform Fasset was granted a temporary banking license on October 7, 2025. This allows Fasset to operate a Shariah-compliant digital bank with stablecoins.
The company serves users across 125 countries. It reported US$6 billion in annualized volume and expects US$24 billion by late 2026. Fasset targets interest-free products tied to digital tokens, stocks, and gold.
Malaysia is working to develop a larger and more efficient crypto market. The new rules require exchanges to follow stronger standards while giving investors access to a wider range of tokens. The country aims to increase participation, strengthen oversight, and improve institutional confidence as regional competition grows.
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