Crypto & Digital Assets · Malaysia
Is crypto legal in Malaysia? Rules & regulation (2026)
Malaysia shaded by its crypto & digital assets status
Crypto is regulated in Malaysia.
FrameworkCapital Markets and Services Act 2007 (CMSA) read with the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 and the Securities Commission Malaysia (SC) Guidelines on Digital Assets; Bank Negara Malaysia (BNM) exercises payment-system and monetary oversight in a co-regulatory 'dual model' with the SC.
Digital assets are legal in Malaysia and comprehensively regulated. Since January 2019 the SC has classified qualifying digital currencies and tokens as 'securities', bringing exchanges (DAX), token offerings (IEO) and digital asset custodians (DAC) into a mandatory registration regime, most recently tightened via revised Guidelines on Digital Assets that took effect 20 May 2026 and further clarifications on digital asset broking by CMSL holders in January 2026. Cryptocurrencies are not legal tender (only the ringgit is), but BNM's Digital Asset Innovation Hub is piloting ringgit-denominated stablecoins and tokenised deposits, with formal stablecoin guidance expected by end-2026.
Key points
The Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 (in force 15 January 2019) prescribes qualifying digital currencies and digital tokens as 'securities' under the CMSA 2007, meaning any offering, dealing, trading or custody activity requires SC authorisation.
The SC regulates capital-market conduct (exchanges, offerings, custody, brokers), while Bank Negara Malaysia (BNM) regulates payments and monetary matters; BNM has repeatedly stated that cryptocurrencies are not legal tender and only the ringgit is.
Revised SC Guidelines on Digital Assets took effect 20 May 2026, liberalising the token listing framework, tightening capital, shareholding and fit-and-proper requirements for licensed DAX operators, and strengthening client-asset safeguarding; all DAX operators must become members of the Financial Markets Ombudsman Service in 2026.
On 30 January 2026 the SC clarified that Capital Markets Services Licence (CMSL) holders may offer broking services in prescribed digital assets on a cash-upfront basis (no margin/lending), sourcing only from SC-registered DAXs or FATF-compliant offshore venues, with client asset segregation via a registered DAC.
The SC has taken administrative action against unregistered digital asset exchanges and, from 14 April 2026, worked with technology platforms (including Google) to block advertising by unlicensed DAX operators to Malaysian users.
On 11 February 2026 BNM announced three initiatives onboarded under its Digital Asset Innovation Hub to test ringgit stablecoins and tokenised deposits (Standard Chartered/Capital A stablecoin for B2B settlement; Maybank and CIMB tokenised deposits), with regulatory clarity on ringgit stablecoins targeted for end-2026.
Timeline - major decisions & events
The Securities Commission Malaysia issued major revisions to its Guidelines on Recognized Markets, liberalising asset listings while tightening cold-storage (min. 90% offline), client-asset segregation and operator capital requirements. It finalised the enhancements proposed in the 2025 public consultation.
The Vibes ↗The SC issued a Practice Note setting requirements for digital asset broking: assets must have SC concurrence and be sourced from a registered DAX, trades must be cash-upfront with no margin/lending, and client assets must be segregated and custodied. It opened a regulated broker channel beyond direct DAX trading.
Baker McKenzie ↗The SC opened public consultation (30 June-11 Aug 2025) on liberalising token listings by removing case-by-case SC concurrence, alongside stronger custody, segregation and capital rules. The move responded to record 2024 DAX trading of RM13.9 billion.
Securities Commission Malaysia ↗The SC issued a revised edition of its Guidelines on Digital Assets, updating rules for Initial Exchange Offerings (IEO) and Digital Asset Custodians. It refined the fundraising and custody regime built on the original 2020 guidelines.
Securities Commission Malaysia ↗The SC publicly reprimanded Binance and CEO Zhao Changpeng for operating an unregistered Digital Asset Exchange in breach of the Capital Markets and Services Act 2007, ordering its websites and apps disabled and Malaysian users to withdraw funds. It was the regulator's most prominent crypto enforcement action.
Securities Commission Malaysia ↗The SC unveiled plans to allow companies to raise funds by issuing digital tokens through SC-registered IEO platforms, releasing draft guidelines. It signalled Malaysia's intent to regulate, rather than ban, token fundraising.
Securities Commission Malaysia ↗The SC granted Luno Malaysia full approval to operate as a Recognized Market Operator (Digital Asset Exchange), making it the first fully approved crypto exchange in the country. It marked the first live, fully compliant DAX under the new regime.
The Malaysian Reserve ↗The SC conditionally registered Luno, SINEGY and Tokenize as Recognized Market Operators for digital asset exchanges, giving them up to nine months to fully comply. It established Malaysia's first set of regulated crypto trading venues.
Securities Commission Malaysia ↗Bank Negara Malaysia issued its AML/CFT, Digital Currencies (Sector 6) policy, designating crypto exchanges as reporting institutions under the AMLA 2001 with KYC, due-diligence and reporting duties. It brought crypto businesses into the anti-money-laundering perimeter.
Bank Negara Malaysia ↗Bank Negara Malaysia issued its first official statement that Bitcoin is not recognised as legal tender and is not regulated by the central bank, warning the public of associated risks. It was Malaysia's earliest formal regulatory position on cryptocurrency.
Bank Negara Malaysia ↗Malaysia - other topics
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