The framework announced in January is now live — with an important addition.
The Securities Commission's revised Guidelines on Digital Assets come into force today, activating Malaysia's Initial Exchange Offering (IEO) fundraising regime and introducing a registration framework for a new category of market institution: the Digital Asset Custodian (DAC).
Why custody matters
Every scandal in crypto's short history ultimately becomes a custody story — who actually holds the assets, and what stops them from disappearing. By regulating custodians directly, the SC is building the institutional plumbing that exchanges, funds and token issuers will need. Custodians that provide safekeeping, storage and management of digital assets must now register with the SC and meet its requirements.
Deadlines and penalties
- Interested IEO operators have until 15 February 2021 to apply.
- Operating a digital asset business without authorisation carries a fine of up to RM10 million, up to 10 years' imprisonment, or both.
The bigger picture
With today's coming-into-force, Malaysia's regulatory stack for digital assets is remarkably complete for its time: exchanges (the DAX regime, 2019), fundraising (IEO platforms) and now custody. The pieces are in place — the next chapter is watching who gets registered to fill them.