Briefly
On 30 January 2026, the Securities Fee Malaysia (SC) offered readability on the regulatory framework governing the providing of broking companies for digital property.
The SC has affirmed the place that Capital Markets Providers Licence holders for dealing in securities and dealing in securities restricted to listed securities (collectively, “CMSL Holders“) are permitted to supply broking companies in respect of digital property that fulfill the prescribed standards of “securities” underneath the Capital Markets and Providers (Prescription of Securities) (Digital Forex and Digital Token) Order 2019. Nevertheless, such CMSL Holders should adjust to the relevant necessities and restrictions, together with (amongst others) submitting a previous notification to the SC; submitting to the SC a declaration on the system and operational readiness of the CMSL Holder; and buying and selling solely in prescribed digital property.
In additional element: Salient Necessities and Restrictions
The salient necessities and restrictions on CMSL Holders providing digital asset broking companies embrace:
(i) Prior Notification and Declaration to the SC
A CMSL Holder intending to supply broking companies for digital property should notify the SC prematurely and submit a declaration that’s validated by a 3rd social gathering auditor registered with the Audit Oversight Board, confirming the readiness of the CMSL Holder’s techniques and operations.
(ii) Restrictions on Buying and selling in Digital Property
A CMSL Holder is topic to the next restrictions:
(a) Digital property will need to have obtained concurrence of the SC, and might solely be sourced from a registered digital asset trade; or an offshore digital asset buying and selling platform or counterparty which is regulated in a jurisdiction that offers impact to the Monetary Motion Process Drive suggestions for digital asset service suppliers, and maintains threat‑primarily based AML/CFT/CPF controls supervised by a reliable authority
(b) All transactions with shoppers are carried out on a money‑upfront foundation
(c) It can not present margin or lending services to shoppers
(d) It should chorus from exercising discretionary authority over its shopper’s digital asset buying and selling account.
(iii) Consumer Asset Safety
There are safeguarding necessities for functions of shopper asset safety, and subsequently CMSL Holders should keep a segregation of shopper property; be certain that the digital property are held with a digital asset custodian and any earnings or advantages from the digital property should accrue to the shopper.
Conclusion and subsequent steps
With clearer regulatory parameters for CMSL Holders intending to supply digital asset broking companies, trade gamers ought to undertake an intensive evaluation of the relevant obligations and restrictions to make sure that their inside controls, custody preparations, and buying and selling protocols are totally aligned with the SC’s regulatory expectations previous to commencing such broking companies, or opting to acquire a CMSL from the SC to take action.
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Eliza Chow and Raynice Chew, Associates, have contributed to this authorized replace.
Briefly
On 30 January 2026, the Securities Fee Malaysia (SC) offered readability on the regulatory framework governing the providing of broking companies for digital property.
The SC has affirmed the place that Capital Markets Providers Licence holders for dealing in securities and dealing in securities restricted to listed securities (collectively, “CMSL Holders“) are permitted to supply broking companies in respect of digital property that fulfill the prescribed standards of “securities” underneath the Capital Markets and Providers (Prescription of Securities) (Digital Forex and Digital Token) Order 2019. Nevertheless, such CMSL Holders should adjust to the relevant necessities and restrictions, together with (amongst others) submitting a previous notification to the SC; submitting to the SC a declaration on the system and operational readiness of the CMSL Holder; and buying and selling solely in prescribed digital property.
In additional element: Salient Necessities and Restrictions
The salient necessities and restrictions on CMSL Holders providing digital asset broking companies embrace:
(i) Prior Notification and Declaration to the SC
A CMSL Holder intending to supply broking companies for digital property should notify the SC prematurely and submit a declaration that’s validated by a 3rd social gathering auditor registered with the Audit Oversight Board, confirming the readiness of the CMSL Holder’s techniques and operations.
(ii) Restrictions on Buying and selling in Digital Property
A CMSL Holder is topic to the next restrictions:
(a) Digital property will need to have obtained concurrence of the SC, and might solely be sourced from a registered digital asset trade; or an offshore digital asset buying and selling platform or counterparty which is regulated in a jurisdiction that offers impact to the Monetary Motion Process Drive suggestions for digital asset service suppliers, and maintains threat‑primarily based AML/CFT/CPF controls supervised by a reliable authority
(b) All transactions with shoppers are carried out on a money‑upfront foundation
(c) It can not present margin or lending services to shoppers
(d) It should chorus from exercising discretionary authority over its shopper’s digital asset buying and selling account.
(iii) Consumer Asset Safety
There are safeguarding necessities for functions of shopper asset safety, and subsequently CMSL Holders should keep a segregation of shopper property; be certain that the digital property are held with a digital asset custodian and any earnings or advantages from the digital property should accrue to the shopper.
Conclusion and subsequent steps
With clearer regulatory parameters for CMSL Holders intending to supply digital asset broking companies, trade gamers ought to undertake an intensive evaluation of the relevant obligations and restrictions to make sure that their inside controls, custody preparations, and buying and selling protocols are totally aligned with the SC’s regulatory expectations previous to commencing such broking companies, or opting to acquire a CMSL from the SC to take action.
*****
Eliza Chow and Raynice Chew, Associates, have contributed to this authorized replace.
