Is crypto legal in Malaysia? Regulation & rules (2026)

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 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.

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.

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.

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.

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.

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 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.

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 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.