Overview
Malaysia regulates crypto through the Securities Commission Malaysia (SC). The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, gazetted on 15 January 2019, prescribes digital currencies and tokens that meet the order's conditions as securities under the Capital Markets and Services Act 2007 (CMSA). The SC therefore licenses three categories: Digital Asset Exchange (DAX) under the RMO Guidelines Part 5, IEO Operator under the Guidelines on Digital Assets, and Digital Asset Custodian (DAC) under the same guidelines and the DAC framework.
The current paid-up capital is MYR 5,000,000 for a standard DAX. The SC opened Public Consultation Paper 3/2025 in mid-2025 proposing an uplift to MYR 15M plus a higher shareholders' funds floor, but as of April 2026 the final revised guidelines have not been gazetted — the SC has indicated 1H 2026 for issuance.
The regulator — Securities Commission Malaysia
The SC is the statutory body that regulates Malaysian capital markets, including digital assets prescribed as securities. The relevant divisions are Digital Strategy & Innovation (policy and registration) and Market & Corporate Supervision (ongoing oversight). Registered DAX operators are listed on the SC public register — currently Luno Malaysia, SINEGY DAX, Tokenize Technology, MX Global and HATA Digital.
Track 1 — DAX (Recognized Market Operator)
A Digital Asset Exchange is registered as a Recognized Market Operator (RMO) under Part 5 of the SC RMO Guidelines. The licence permits operation of a marketplace for the trading of prescribed digital assets.
Capital
| Variant | Paid-up capital | Other |
|---|---|---|
| DAX (standard) | MYR 5,000,000 | — |
| DAX (Digital Broker) | MYR 5,000,000 | + MYR 5,000,000 shareholders' funds maintained at all times |
Track 2 — IEO Operators and Digital Asset Custodians
The Guidelines on Digital Assets set the framework for two adjacent licences. IEO Operators run platforms for token offerings under SC oversight — limited primary issuance, mandatory due diligence, suitability assessment for retail investors. Digital Asset Custodians (DACs) provide qualified custody services for prescribed digital assets, with cold-storage thresholds, segregation, and audit obligations modelled on capital-markets custody.
Public Consultation Paper 3/2025 — proposed uplift
SC opened PCP 3/2025 from 30 June 2025 to 11 August 2025. Proposed enhancements include:
- Paid-up capital uplift to MYR 15 million (from MYR 5M).
- Shareholders' funds: higher of MYR 5M (MYR 7M for Digital Broker) or 25% of operating expenses.
- Asset segregation: at least 90% of client digital assets in cold/offline wallets.
- Removal of SC direct concurrence for certain listings — faster time-to-market under DAX operator accountability.
- One-year transition for existing DAXs to meet new financial thresholds after final issuance.
Final guidelines from PCP 3/2025 have not been gazetted as of April 2026. SC has indicated 1H 2026 for issuance. Until then the MYR 5M paid-up capital regime remains the operative law. Plan capital raises with headroom: design the Sdn Bhd cap-table to absorb the uplift to MYR 15M without restructuring.
High-level checklist (DAX)
- Locally incorporated Malaysian company (Sdn Bhd) with at least one resident director.
- Paid-up capital of MYR 5M (current); plan for MYR 15M post-PCP transition.
- Fit-and-proper directors, key management and substantial shareholders.
- AML/CFT programme aligned with SC and BNM AML/CFT/CPF guidelines.
- Custody architecture: cold-storage segregation, key-management controls, insurance.
- Token-listing committee and admission policy aligned with SC concurrence (current) or DAX operator accountability (post-PCP).
- Technology-risk framework and operational resilience plan.
- Three-year business plan, financial projections and capital plan.
- SC application via the Digital Strategy & Innovation team; respond to clarification rounds.
- Post-registration: ongoing reporting, periodic SC inspections, RMO annual return.
Process and timeline
| Stage | DAX (RMO) |
|---|---|
| Pre-application — Sdn Bhd, AML, tech, capital funding | 3–6 months |
| SC review | 6–12 months |
| Total realistic | 9–18 months |
No statutory SLA. Timing scales with submission completeness and SC clarification rounds.
Taxation
- Corporate tax: standard rate 24%.
- No bespoke digital-asset tax regime. Active trading gains are business income (taxable). Occasional disposals may be capital in nature; Malaysia generally has no CGT, but the IRB assesses by badges of trade.
- Service Tax (SST): 8% on taxable services from March 2024. Crypto-exchange fee classification depends on the service.
FAQ
What capital is required?
MYR 5M paid-up under the current SC RMO Guidelines. Digital Broker variant adds MYR 5M shareholders' funds. PCP 3/2025 proposes MYR 15M paid-up; not yet gazetted.
Do I need a local director?
Yes. The licensee is a locally incorporated Sdn Bhd with at least one resident director.
Is Labuan an alternative to SC Malaysia?
Yes for offshore profiles. Labuan sits at MYR 500k paid-up under Labuan FSA — a different regulator, much lower threshold, but with substance obligations under Pragma Note 3/2024.
How does Malaysia compare with Singapore?
Singapore licences under MAS PSA at SGD 250k (MPI) — lower headline capital but stricter ongoing supervision and the Part 9 DTSP regime layer.
When will the PCP 3/2025 changes take effect?
SC has indicated 1H 2026 for the revised guidelines. Existing DAXs will then have one year to meet the new financial thresholds.