Malaysia Tightens Crypto Framework in 2025 Regulatory Overhaul

Malaysia maintains its cautious stance on cryptocurrency, recognizing digital assets as securities rather than legal tender. The Securities Commission Malaysia (SC) has amended the Prescription Securities and Digital Currency and Digital Token Order 2019, expanding regulatory oversight of token offerings and trading. This revision aligns with global trends of formalizing crypto governance while stopping short of endorsing it for payments.

Key 2025 updates include stricter data handling requirements under July 2024''s Personal Data Protection Act and intensified tax enforcement through Operation Token. The SC continues developing comprehensive digital asset frameworks, including public consultations on tokenized capital market products—a signal of institutional engagement with blockchain technology.