The Securities Commission Malaysia reports a rising trend in digital asset trading, driven by regulated participants and increased investor engagement, with growth in RMO-DAX trading, IEOs, and digital investment management. Collaborative initiatives aim to further explore tokenisation in the capital market.
The Securities Commission Malaysia (SC) has indicated a notable advancement in the digital asset landscape, reflecting Malaysian investors’ increasing engagement with crypto-asset trading. This growth stems from a more diverse capital market aimed to cater to a broader audience, alongside the involvement of regulated entities.
As per the SC’s Annual Report 2024, there has been a significant uptick in crypto-asset trading within recognized market operators in the digital asset exchange (RMO-DAX) sector. This includes the proliferation of ecosystem participants, digital asset funds, initial exchange offerings (IEOs), and a growing interest in blockchain technology and tokenisation of assets.
The SC reported that the average daily trading volume at RMO-DAXs surged by 2.6 times from the previous year. Furthermore, IEO operators have successfully launched their initial tokens for fundraising, netting RM48 million from various token issuances, including a Shariah-compliant investment note.
Blockchain technology illustrates features such as programmability and transparency, which are driving global interest in asset tokenisation. To further innovate within the capital market, the SC is working with Khazanah Nasional Bhd to explore tokenised bonds or sukuk, focusing on the applicability of smart contracts and custodial frameworks.
Since December 2018, digital investment management (DIM) has expanded dramatically, witnessing a growth exceeding 500%, culminating in total assets under management (AUM) of RM1.9 billion. Additionally, e-services platforms (e-SPs) have seen subscriptions to capital market products surpass RM53 million by December 2024, doubling the figures from December 2023, with RM33 million subscribed in just 2024 alone.
The SC’s findings illustrate a robust expansion within Malaysia’s digital asset ecosystem, driven by increased trading activities, innovative fundraising methods, and significant growth in digital investment management. The collaborations and advancements in blockchain technology highlight Malaysia’s commitment to enhancing its capital market while fostering innovation in asset tokenisation and investment management.
Original Source: www.bernama.com
