Malaysia 2025 Crypto Market: From Regulation to Islamic Finance Hub

Published: 2025-08-04 09:16:00 |

Malaysia crypto market enter 2025 wit three-phase regulatory change wey don turn am from conservative control go proactive support. Phase one (2019–2020) make Securities Commission Malaysia (SC) define digital currencies and tokens, set capital and governance rules for exchanges (DAX), IEO platforms and custodians. Phase two (2021–2024) tighten enforcement: SC block unregistered foreign exchanges like Binance and Bybit, freeze accounts of unauthorized users and work with ISPs and app stores to remove illegal platforms. Since early 2025, under Prime Minister Anwar Ibrahim, Malaysia don speed up im Web3 plans. Policy highlights include Digital Asset Innovation Hub sandbox led by Bank Negara Malaysia, Digital Asset and Blockchain Working Committee, plus government-backed Malaysia Blockchain Infrastructure (MBI). SC’s June 2025 consultation paper move from pre-approval to self-listing for tokens, make entry easier but keep strict rules for high-risk assets. Local exchanges—Luno, Hata and Sinegy—compete with Binance and Bybit for 40–60% of trading volume. Stablecoin issuance still cautious, but Blox’s MYRC (MYR-pegged) dey beta. NFT scene center on Pudgy Penguins active community. Malaysia use im status as leading Islamic finance hub: 15 Shariah-compliant assets including BTC and ETH, Shariah-certified funds by Halogen Capital and DeFi through Nawa Finance, plus crypto zakat payments via Sharlife. These developments make Malaysia one competitive Web3 hub for Asia.

Bullish

Di phased regulatori overhaul, di government-backed infrastructure projects plus proactive Shariah integration dem dey show strong market support plus long-term growth potential. Historical parallels like Singapore fintech sandbox dey prove say clear frameworks plus regulatory sandboxes dey attract investment, innovation and trading volume. Short-term traders fit see volatility as listings dey expand, but long-term bulls go benefit from improved ecosystem, wider token access and new on-chain services, especially for Islamic finance and regional hub initiatives.