The growth of Malaysia’s digital asset ecosystem reflects increased investor familiarity with crypto trading, according to the Securities Commission Malaysia. Key developments include a 2.6 times rise in average daily trading values, successful fundraising through token offerings, and substantial growth in digital investment management. The SC’s collaboration with Khazanah Nasional to explore tokenization further signals a progressive shift in Malaysia’s capital market.
The Securities Commission of Malaysia (SC) reported in its Annual Report 2024 that the Malaysian digital asset ecosystem is expanding, reflecting increased investor familiarity with crypto assets. This development is enhanced by the involvement of regulated market participants, aligning with the SC’s agenda for a diversified and democratized capital market.
The SC observed significant improvements in the crypto-asset trading sector, with a notable 2.6-fold increase in average daily trading value among Recognised Market Operators-Digital Asset Exchanges (RMO-DAX) in 2024 compared to the previous year. Additionally, there has been an uptick in various offerings, including digital asset funds and initial exchange offering (IEO) fundraising, which signals growing interest in blockchain technology and tokenization.
In 2023, IEO operators successfully initiated their first fundraising token issuances, capturing RM48 million, including a Shariah-compliant investment note and utility tokens. The report underscores blockchain’s promise of programmability and transparency, fueling global interest in tokenized securities coordination.
Furthermore, to enhance the Malaysian capital market’s future, the SC is partnering with Khazanah Nasional Bhd to explore tokenized bonds or sukuk. This collaboration aims to investigate smart contracts and custodial arrangements, thus improving the understanding of blockchain’s benefits and risks.
The report also highlighted a remarkable 500-fold growth in digital investment management (DIM) since December 2018, with total assets under management reaching RM1.9 billion as of December 2024. Additionally, the e-services platforms (e-SPs) have surpassed RM53 million in subscriptions for capital market products, showing a twofold increase year-on-year, with RM33 million recorded in just 2024 alone, representing 61 percent of total subscriptions.
In conclusion, the Securities Commission Malaysia’s findings signify a substantial growth trajectory in the digital asset market, notably driven by increased investor engagement and regulated market participation. The SC’s collaboration with Khazanah Nasional Bhd to explore tokenized instruments reflects a progressive approach towards modernizing the capital markets in Malaysia. Overall, the continued evolution of digital investment management and e-services platforms illustrates a robust investment landscape in the country.
Original Source: www.bernama.com
