Game changer or missed opportunity: What to expect on the regulatory horizon?

by Edmund Yong, Gan Ming Chiek, Kelvin Wong

In May 2025. the Securities Commission Malaysia released a Public Consultation Paper on the Proposed Regulatory Framework for Offering and Dealing in Tokenised Capital Market Products. This is a strategic move toward shaping Malaysia’s digital asset landscape.

Tokenisation is not just a trend – it is a paradigm shift. Around the globe, regulators are stepping up to define the future of capital markets in the digital age. In our latest client communiqué (in FAQ format), we unpack what this proposed framework means for industry players – and what you need to be prepared for.

TLDR: The proposed regulatory framework falls back mainly on existing securities laws, without indication of the need for new legislation or reform. The market should continue its proactive role in responsible innovation, though this does not anticipate or equate to self-regulation. Upon implementation, this will significantly broaden the playing field for tokenisation, with the participation of P2P and ECF operators as well as CMSL institutions.

The communiqué can be downloaded via LinkedIn (GLT Law company page) by clicking here.