Growth of Digital Asset Ecosystem in Malaysia Driven by Crypto Trading
Malaysia’s digital asset ecosystem is experiencing notable growth, driven by enhanced investor familiarity with cryptocurrency trading, regulated market participants, and innovations in digital investment management. The report highlights a 2.6-fold increase in trading values and significant fundraising efforts through tokenized assets. A collaborative venture will further explore the potential of tokenized bonds, framing a dynamic outlook for the capital market.
On March 20, the Securities Commission Malaysia (SC) reported a surge in Malaysia’s digital asset ecosystem, highlighting growing investor familiarity with cryptocurrencies and related trading activities. This expansion is attributed to regulated market players, aligning with the SC’s digital agenda to foster a diverse, democratic capital market.
The SC noted a significant rebound in crypto-asset trading, with a reported increase of 2.6 times in the average daily trading value of recognized market operators, particularly in the digital asset exchange (RMO-DAX) sector. Furthermore, the emergence of digital asset-related products, including digital asset funds and Initial Exchange Offering (IEO) token fundraising, reflects the heightened interest in cryptocurrency within Malaysia.
Last year, IEO operators successfully launched their first tokens for fundraising purposes, which included a tokenized Shariah-compliant investment note, in total raising RM48 million. The SC emphasized the potential of blockchain technology due to its transparency and accessibility, furthering international interest in the tokenization of securities.
To advance Malaysia’s capital market, the SC has partnered with Khazanah Nasional Bhd to examine the issuance of tokenized bonds or sukuk. This collaboration aims to investigate the applications of tokenization, including smart contracts and custodial arrangements, enriching the understanding of blockchain benefits and risks.
As of December 2024, digital investment management (DIM) has expanded over 500 times since December 2018, with total assets under management reaching RM1.9 billion. Additionally, cumulative subscriptions to capital market products on e-services platforms (e-SPs) have exceeded RM53 million, more than doubling since December 2023. Notably, 2024 alone saw subscriptions nearing RM33 million, constituting 61% of all subscriptions.
The Securities Commission Malaysia’s report reveals a robust growth in the digital asset ecosystem, characterized by increased investor participation, the rise of regulated players, and significant advancements in digital investment management. The partnership with Khazanah Nasional Bhd to explore tokenized instruments exemplifies a commitment to harness blockchain technology, while the continued rise of subscriptions to capital market products underscores the expanding interest in digital finance. This growth reflects a promising future for Malaysia’s capital market as it adapts to evolving asset classes.
Original Source: www.bernama.com
