Regulator: Bank Negara Malaysia (BNM) & Securities Commission Malaysia (SC)
Malaysia's stablecoin regulation remains in draft/exploration phase without dedicated statutory legislation. The framework is primarily exploratory through BNM's 2025–2027 tokenization roadmap, which includes MYR-backed stablecoin pilots. BNM's dual-principle approach emphasizes "singleness of money" to maintain fiat-crypto interchangeability at par value, allowing participation only by regulated institutions within permissioned environments that enforce KYC and AML safeguards. Regulated institutions only; institutional participation mandatory. Permissioned environments with KYC/AML safeguards required. Currently, stablecoins operate in regulatory gray area under existing financial, trust, and AML/CFT laws administered by both BNM and Securities Commission Malaysia. Digital Asset Innovation Hub (DAIH) launched in 2025 as the primary sandbox for stablecoin testing. Public consultation period extends through March 1, 2026.
Applicable Laws:
Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order - https://www.sc.com.my/api/documentms/download.ashx?id=8c8bc467-c750-466e-9a86-98c12fec4a77
