SC: CRYPTO TRADING FUELS DIGITAL ASSET GROWTH IN MALAYSIA

KUALA LUMPUR, March 20 (Bernama) -- The growth of Malaysia’s digital asset ecosystem signals Malaysian investors’ rising familiarity with the new asset classes, particularly crypto-asset trading activities, the Securities Commission Malaysia (SC) said.

In its Annual Report 2024 released today, the SC said the development is also driven by the presence of regulated players in the market, in line with its digital agenda to create a more diversified and democratised capital market.

“In Malaysia, there has been a rebound of crypto-asset trading activities within the recognised market operators – digital asset exchange (RMO-DAX) space, expansion of ecosystem players, increase in digital asset-related products such as digital asset funds and initial exchange offering (IEO) token fundraising, as well as more interest in blockchain adoption and tokenisation within the capital market,” it said.

The SC highlighted that the average daily trading value of RMO-DAXs has increased by 2.6 times in 2024 compared to the previous year.

Meanwhile, the SC noted that IEO operators issued their first token for fundraising last year, including a tokenised Shariah-compliant investment note and two utility token issuances, with the total funds raised reaching RM48 million.  

Besides, it said blockchain technology promises various characteristics such as programmability, transparency, and accessibility, consequently driving global interest in the tokenisation of underlying securities.

To support the future of the Malaysian capital market, the SC is collaborating with Khazanah Nasional Bhd to explore the issuance of a tokenised bond or sukuk.

The SC said this collaboration would allow both parties to delve into the functions and utility of tokenisation, ranging from the use of smart contracts to custodial arrangements, consequently deepening understanding of the benefits and risks involved with blockchain technology.

Regarding digital investment management, the commission said that, as of December 2024, digital investment management (DIM) has grown over 500 times since December 2018, with total assets under management (AUM) valued at RM1.9 billion.

Meanwhile, on the e-services platforms (e-SPs), the SC stated that as of December 2024, the cumulative value of subscriptions to capital market products distributed on the platform has surpassed RM53 million, marking more than a twofold increase compared to December 2023.

“Notably, in 2024 alone, subscriptions of approximately RM33 million, accounting for 61 per cent of the total subscriptions, were recorded,” it added.

-- BERNAMA