Malaysia is working on a new regulatory framework for digital finance to keep up with its peers in the digital asset space, the country’s Prime Minister Datuk Seri Anwar Ibrahim, has revealed.
During his recent visit to Abu Dhabi, the PM told media outlets that he had been in talks with the UAE government to cooperate in promoting the digital asset space. The UAE has one of the most advanced blockchain sectors, with the government pushing for the adoption of the technology in the private and public sectors.
“We have talked about digital transformation, data centres and artificial intelligence (AI). We now face demands which require us to think about making significant changes,” Ibrahim stated.
Like most of its neighbors in Southeast Asia, Malaysia has recorded high digital asset adoption in recent years. However, its securities regulator has been stringent with VASPs, ordering some high-profile operators to shut down for operating without a license. The latest was Bybit in December 2024, which the SC claimed had been offering unlicensed services for years. It also added Atomic Wallet to its investor’s alert list for “operating a digital asset exchange without registration.” In 2021, SC banned Binance for similar transgressions.
PM Ibrahim wants the country to regulate the sector better, revealing he instructed the Treasury and the central bank to study digital assets “so we aren’t left behind.” Balanced regulation will protect investors and prevent ‘leakages,’ he added.
“However, this innovation is just like AI, which would revamp the financial world. We should not sit idly by and wait and later be forced to do so after others have done it already,” he said.
The Prime Minister, who took office two years ago, further revealed that the UAE government had offered to help Malaysia with its digital asset regulation.
“We need to discuss this in detail, leave behind the old business model and give meaning to this digital finance policy. I hope we can be more open to this. I am leaning towards not just approving but also expediting this,” he stated.
While acknowledging the necessity for speed, Ibrahim cautioned that there’s a need for the SC, the Treasury and the central bank to study the sector and determine the best policies that strike a balance between investor protection and cracking the whip on crime.
Additionally, these agencies must “train our personnel, develop competency, and get the players to participate…This will be a radical departure from the old ways.”
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