The growth of Malaysia’s digital asset ecosystem and crypto trading reflects increased investor familiarity, driven by regulatory support and innovative market products, according to the SC’s 2024 Annual Report. Significant increases in trading volumes, the introduction of new tokens, and evolving digital investment management illustrate this trend.
The Securities Commission Malaysia (SC) has reported significant growth in Malaysia’s digital asset ecosystem, indicating an increased familiarity among local investors with crypto-asset trading. This growth is facilitated by the presence of regulated market players and aligns with the Commission’s agenda to create a diversified capital market.
In its 2024 Annual Report, the SC noted a resurgence in crypto-asset trading activities within recognized market operators, specifically in the digital asset exchange (RMO-DAX) sector. There has been an expansion of ecosystem players, as well as an increase in digital asset products like funds and initial exchange offerings (IEOs), along with a heightened interest in blockchain adoption and tokenization.
The SC recorded a 2.6 times increase in the average daily trading value of RMO-DAXs in 2024 compared to the previous year. IEO operators successfully issued their first fundraising token, which included a Shariah-compliant investment note and two utility tokens, raising RM48 million in total.
Blockchain technology is highlighted for its programmability, transparency, and accessibility, stimulating interest in the tokenization of securities worldwide. To enhance the Malaysian capital market, the SC is collaborating with Khazanah Nasional Bhd to explore the issuance of tokenized bonds or sukuk, focusing on smart contracts and custodial arrangements.
The SC also reported that digital investment management (DIM) has surged over 500 times since December 2018, with total assets under management reaching RM1.9 billion as of December 2024. Additionally, the cumulative value of subscriptions to capital market products on e-services platforms surpassed RM53 million, reflecting over a twofold increase from the previous year.
The rapid development of Malaysia’s digital asset ecosystem signifies a growing acceptance and understanding of crypto-asset trading among investors. The collaboration between the SC and Khazanah Nasional Bhd, alongside the remarkable growth in digital investment management, positions Malaysia as a robust player in the digital finance landscape.
Original Source: www.bernama.com
