Digital Assets Recognised as Securities in Malaysia
On 30 January 2026, new guidelines were issued clarifying how licensed intermediaries can offer broking services for digital assets. Certain digital currencies and tokens are now officially recognised as securities, meaning they fall under Malaysia’s regulated capital market framework.
Who Can Offer Digital Asset Broking?
Only companies holding a Capital Markets Services Licence (CMSL) for dealing in securities can offer broking services for qualifying digital assets.
A CMSL authorises firms to carry out regulated capital market activities. Examples of licensed firms in Malaysia include:
- Kenanga Investment Bank Berhad
- Maybank Investment Bank Berhad
- Rakuten Trade Sdn Bhd
- CGS International Securities Malaysia Sdn Bhd
These companies already provide stockbroking and investment services, and they can now extend their offerings to approved digital assets — under clear operational standards.
Pre-Operational Requirements for Digital Asset Broking
Before offering digital asset broking, licensed firms must:
- Notify the regulator of their plans.
- Have their policies reviewed by an independent auditor to ensure compliance with relevant guidelines.
- Ensure their team has the necessary expertise in blockchain technology and the associated risks.
These steps ensure that only qualified and well-prepared intermediaries provide these services.
How the Trading Works
Your broker acts as the “middle person” to help you buy and sell digital assets. They cannot just get these assets from anywhere; they must follow strict rules to make sure the assets come from a safe place.
Here is how they get the assets for your trades:
• Registered Exchanges in Malaysia: Your broker can get digital assets from a Digital Asset Exchange (DAX) that is officially registered with the Securities Commission Malaysia (SC), such as KDX.
• Foreign Platforms with Strong Rules: They can also use platforms outside of Malaysia, but only if that platform follows strict international rules to stop illegal activities like money laundering.
To keep your money safe, the SC requires brokers to do a “background check” (due diligence) on any foreign platform they use. They must verify that the platform is properly licensed in its own country. Finally, brokers are only allowed to let you trade digital assets that the SC has officially cleared or approved.
Key Safeguards
The updated framework also introduces important safeguards for investors:
- Digital assets must be sourced from licensed or properly regulated platforms.
- Only digital assets that have received official approval may be offered to clients.
- All transactions must be conducted on a cash upfront basis — no margin or lending is allowed.
- Client assets must be fully segregated, and digital assets must be held with a licensed custodian to prevent misuse.
- Clear disclosure is required for custody arrangements and handling of blockchain events such as hard forks or airdrops.
Positive Outlook for Malaysians
This framework strengthens investor protection while opening the door for broader participation in digital assets. Malaysians now have safer and more transparent access to digital investments, backed by licensed intermediaries with proper safeguards.
With clear rules and strong protections in place, Malaysia is positioning itself as a responsible and forward-looking market for digital asset growth — offering exciting opportunities for both retail and institutional investors.