Malaysia considers easing crypto asset listings, seeks public input.
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Malaysia Proposes Easing Crypto Asset Listing Regulations
In a significant move aimed at enhancing the digital asset landscape, Malaysia’s Securities Commission (SC) has unveiled a proposal to streamline the process for listing certain cryptocurrencies on exchanges. This initiative seeks public feedback on allowing digital assets to be listed without requiring prior approval from the regulator, a step that could accelerate the growth and diversity of crypto offerings in the country.
Proposed Changes to Listing Framework
Related: Cryptocurrency Listing: What It Is and How Tokens Are Added to Exchanges
According to an official announcement, the SC is considering a more liberal approach to the listing process. The proposed rules would permit digital assets that meet specific criteria to be listed directly by exchanges. This change aims to reduce the time-to-market for new assets, increase accountability among exchange operators, and expand the range of products available to investors.
Criteria for Asset Approval
Under the new framework, exchanges would be responsible for ensuring that listed assets have undergone security audits with publicly accessible results. Additionally, these assets must have been traded for at least a year on platforms compliant with the Financial Action Task Force (FATF) standards. The SC is also seeking input on whether high-risk assets, such as privacy coins like Monero, should be allowed, given their potential for misuse in illegal activities.
Related: Binance Co-Founder Reveals the Criteria for Token Listing and Dismisses Insider Trading Claims
Governance and Custody Enhancements
The SC’s proposal includes stricter governance and custody requirements for digital exchange operators. Exchanges would need to segregate user assets and comply with new financial criteria to mitigate risks of loss or misuse of funds. Furthermore, exchanges would be required to appoint a senior management member residing in Malaysia to oversee wallet administration, ensuring greater accountability and security.
Related: Malaysia's Prime Minister Discusses Cryptocurrency Regulations in UAE Visit
Industry and Public Feedback
The SC is actively seeking feedback from industry stakeholders and the public on these proposed changes. This consultation process reflects the regulator’s commitment to fostering a robust and secure digital asset ecosystem in Malaysia. The outcome could significantly influence the regulatory environment, potentially positioning Malaysia as a more attractive hub for digital asset innovation.
For more details on the consultation process, interested parties can access the full consultation paper provided by the Securities Commission Malaysia.
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