General information about the Malaysian crypto license
Since 2019, the Securities Commission of Malaysia has regulated crypto businesses through the Digital Asset Exchange Operator license framework. This framework is a subdivision of the Regulated Market Operator framework.

In Malaysia, cryptocurrencies are considered securities since the voting of the Capital Markets and Services Order of 2019 on Prescription of Securities & Digital Currency and Digital Token. Hence, the delegation to the Securities Commission for their supervision. This qualification also means that only crypto assets that have been duly approved by the regulator are allowed in Malaysia.

The basis for the two-levelled framework lies in the Capital Markets & Services Act 2007 and is completed by two Guidelines issued by the Securities Commission:

Guidelines for Regulated Market Operators;
Guidelines for Digital Asset Exchange Operators.
These documents specify the compliance requirements to be met by license applicants and holders. They define the measures to take on the levels of cybersecurity, AML/KYC, solvability, etc. An important requirement to note is the minimum paid-up share capital, which is 5.000.000 Malaysian Ringgit (about 1.050.000 USD).

In 2025, the Capital Markets & Services Act was amended to clarify the definition of a digital token. According to the amendment, “digital token” means a digital representation which is recorded on a distributed digital ledger, whether cryptographically-secured or otherwise, but does not include —
(a) debentures, stocks or bonds issued or proposed to be issued by any government;
(b) shares in or debentures of, a body corporate or an unincorporated body; or
(c) units in a unit trust scheme or prescribed investments, and includes any right, option or interest in respect thereof.

Malaysia Crypto License: Process and Duration
Obtaining a crypto license in Malaysia is notoriously difficult and long. The applying project must meet stringent requirements before being able to carry out a request for a license. The licensing process itself takes several months, but can last even more.

The company should be set up in a way that the board of directors can demonstrate fitness and property, as well as the required experience and qualifications for their position. One of them should be appointed as the responsible person who has to perform all the AML-KYC and compliance duties.

The company must be set in Malaysia as a resident company. Though there are no official requirements for residency, it is certain that the Securities Commission favors companies that have their actual place of business in Malaysia.

The different types of crypto licenses in Malaysia
To perform crypto activities in Malaysia, it is possible to apply for the Digital Assets Exchange Operator license. This license is itself a sublicense of the Regulated Market Operator framework. The license is granted by the Securities Commission of Malaysia.

A Digital Asset Exchange Operator in Malaysia can perform exchange services with a limited number of crypto assets. It is able to operate either from an order book or with a digital broker model (or both).