Digital assets already contributing to economic activity, but potential remained uncertain
KUALA LUMPUR: Malaysia is laying the foundations for broader economic activity through digital assets, although their full potential will depend on how the technology and ecosystem scale, says the Securities Commission (SC).
Malaysia is establishing a foundation for digital assets to drive broader economic activity, yet their full potential is contingent on the technology and ecosystem scaling, according to the Securities Commission (SC). Dr Wong Huey Ching, SC's digital strategy and innovation executive director, noted digital assets are already boosting economic activity, but their long-term potential remains unclear.
The SC sees promise in digital assets and blockchain solutions to tackle capital market issues. However, challenges persist, including varying levels of technology familiarity and scalability. The adoption of regulated digital asset trading has climbed 23% in 2025, with trading value reaching RM17.14 billion, up from RM13.93 billion in 2024.
Strong regulatory measures are facilitating this growth, including enhanced client asset safeguards, financial stability requirements, and competency standards for management. Exchanges will also be integrated into the Financial Markets Ombudsman Service under SC's revised guidelines. In 2026, multiple tokenization initiatives have emerged in both traditional finance and digital asset ecosystems, paving the way for greater economic activity.
Malaysia's regulatory framework has attracted firms involved in custody, tokenization, compliance, and regulatory technology. The country's position in Islamic capital markets also presents opportunities for Shariah-compliant digital finance. The development of local infrastructure and regulatory clarity is crucial for the ecosystem's credibility and productivity, with talent pipelines and access to functioning sandboxes being valuable resources for digital asset companies.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
