The Securities Commission Malaysia reports a significant rise in digital asset trading, driven by regulated operators and increasing investor engagement. The average daily trading value of digital exchanges rose by 2.6 times. New investment products and collaborative explorations of tokenized bonds highlight ongoing evolution in Malaysia’s capital market.
The Securities Commission Malaysia (SC) reports a significant expansion in Malaysia’s digital asset landscape, highlighting the increasing engagement of local investors with cryptocurrency. This growth is attributed to the presence of regulated entities and reflects the SC’s efforts to foster a diverse and accessible capital market.
In its Annual Report 2024, the SC noted a resurgence in crypto-asset trading within regulated market operators, specifically in the digital asset exchange (RMO-DAX) sector. This sector displayed enhanced trading activities, with the average daily trading volume increasing by 2.6 times compared to the previous year.
The SC pointed out that the issuance of tokens for initial exchange offerings (IEOs) marked a significant step last year, with raised funds amounting to RM48 million across various projects, including Shariah-compliant assets. The growth of blockchain technology also fuels interest in asset tokenization, promoting its programmability, transparency, and accessibility.
In collaboration with Khazanah Nasional Bhd, the SC is investigating the potential for issuing tokenized bonds, or sukuk, to leverage the advantages of blockchain technology further. This partnership aims to enhance understanding of tokenization’s risks and benefits through practical applications like smart contracts and custodial arrangements.
Additionally, as of December 2024, the digital investment management sector has surged, expanding over 500 times since December 2018, with total assets under management reaching RM1.9 billion. The commission also reported that e-services platforms have facilitated subscriptions exceeding RM53 million, reflecting a considerable increase in interest in capital market products, with over RM33 million attributed to 2024 alone.
The Securities Commission Malaysia’s Annual Report 2024 underscores a pronounced growth in the digital asset market in Malaysia, propelled by regulatory frameworks and increasing investor confidence in cryptocurrency. With significant advancements in trading activities, investment products, and collaborative efforts to explore tokenization, the SC aims to further evolve Malaysia’s capital market landscape. The growth in digital investment management and e-service subscriptions indicates robust interest in these emerging financial avenues.
Original Source: www.bernama.com
