The Securities Commission Malaysia’s 2024 Annual Report highlights significant growth in Malaysia’s digital asset ecosystem, particularly crypto trading, which has increased average daily trading values by 2.6 times. The report details the surge in digital investment management and cumulative subscriptions through e-services platforms. Collaboration with Khazanah Nasional Bhd aims to explore tokenized bonds, underscoring the potential of blockchain technology in enhancing the capital market.
On March 20, 2024, the Securities Commission Malaysia (SC) reported that Malaysia’s digital asset ecosystem is experiencing substantial growth, largely influenced by enhanced investor familiarity with crypto assets and trading activities. The SC’s Annual Report outlines that regulated participants in the market are pivotal in furthering the digital agenda aimed at diversifying and democratizing the capital market.
The SC noted a significant resurgence in crypto-asset trading activities within recognized market operators (RMO-DAX), highlighting a 2.6-fold increase in average daily trading values compared to the previous year. Additionally, there has been growth in digital asset-related products, including digital asset funds and initial exchange offerings (IEOs), alongside an increased interest in blockchain adoption and tokenization within the capital market.
In the previous year, IEO operators successfully issued tokens for fundraising, raising RM48 million from a tokenized Shariah-compliant investment note and two utility token issuances. The SC emphasized the potential of blockchain technology, featuring programmability and transparency, to stimulate global interest in the tokenization of securities.
To bolster the Malaysian capital market’s future, the SC is collaborating with Khazanah Nasional Bhd to investigate the issuance of a tokenized bond or sukuk, aiming to deepen understanding of blockchain’s functionalities through explored uses like smart contracts.
In terms of digital investment management (DIM), the SC reported extraordinary growth, exceeding 500 times since December 2018, with total assets under management valued at RM1.9 billion as of December 2024. Furthermore, the SC detailed that e-services platforms (e-SPs) have seen cumulative subscriptions to capital market products surpassing RM53 million, more than double the amount from the previous year.
The Securities Commission Malaysia identifies a burgeoning digital asset ecosystem within the nation, bolstered by crypto trading activities and regulatory measures. The increase in digital investment management also reflects growing market engagement. The collaboration with Khazanah Nasional Bhd illustrates a proactive approach toward enriching the Malaysian capital market through innovative financial instruments like tokenized bonds. Overall, these developments underscore an evolving investment landscape marked by technological integration and investor interest in digital assets.
Original Source: www.bernama.com
