On 20 May 2026, the Securities Commission Malaysia published the 14th revision of its Guidelines on Recognised Markets. The guidelines govern digital asset exchange operators under the Capital Markets and Services Act 2007. The revision took effect immediately on publication.
The Capital Markets and Services Act 2007, section 34, authorises the SC to prescribe operational, governance, and client-asset standards for Recognised Market Operators. Digital asset exchange operators hold Recognised Market Operator status under that Act. The 14th revision updates conduct-of-business rules, governance expectations, and client-asset protection requirements applicable to all registered DAX platforms in Malaysia.
DAX operators must now meet tighter governance and accountability standards, including stricter client-asset safeguards. From 2026, DAX operators must join the Financial Markets Ombudsman Service, giving retail investors a formal dispute-resolution mechanism. A streamlined product approval process applies to new digital asset listings. The SC took administrative action against four exchanges operating without SC registration. It coordinated with Google to block unregistered operators from advertising to Malaysian users from 14 April 2026.
The revised guidelines include a practice note on digital asset broking services. Updated ETF guidelines permit DAX operators to offer digital currency ETFs. Operators not yet in compliance with the new governance standards should engage directly with the SC to confirm applicable timelines.
Licentium advises on digital asset regulatory matters in Southeast Asia and maintains a partner network in Malaysia and the wider APAC region. Entities seeking Recognised Market Operator status or reviewing their obligations under the revised guidelines may contact us. Work we undertake includes DAX authorisation, regulatory engagement with the Securities Commission Malaysia, digital asset product registration, and exchange governance reviews.