Bank Negara Malaysia announced its plans to research digital asset technology for asset transformation in financial services by 2025. These plans support the research work the bank does into CBDCs and other digital finance tools.

The latest BNM annual report shows that the bank wants to study asset tokenization to develop new banking models for Malaysia”s financial system.

The central bank researches how tokenized deposits can support wholesale CBDC functions. BNM explores potential uses of its technology in transactions that can be customized and improves supply chain operations and company financial management.

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BNM Maintains Crypto Assets Unregulated Status

BNM will issue a discussion paper in 2025 to help business owners identify tokenization principles and possibilities. Our research sets out a systematic method to include tokenization in Malaysian finance and explains how to maintain regulatory standards.

The BNM Regulatory Sandbox works to support distributed ledger technology by giving clients a test space to explore their financial ideas. The test environment will test tokenization to see if it can succeed while keeping both technology development and financial security in balance.

Malaysia shows caution about digital assets despite the increasing demand for them. The central bank underlines that crypto assets should remain unregulated because they do not qualify as legal money and experience unpredictable price swings.

SCM Takes Action Against Unregulated Crypto Platforms

The central bank report shows Malaysia”s crypto asset market represents less than one percent of all banking system deposits throughout 2024.

The amount of crypto trades increased substantially from $1.22 billion in 2023 to $3.14 billion in 2024. SCM now carefully examines cryptocurrency activities because unauthorized foreign exchanges operate without proper licensing within Malaysia.

In December 2024 SCM will force Bybit to stop its online platform due to failure to register properly. The management of Huobi Global Limited had to stop its business activities in Malaysia during 2023.

The authorities note that crypto investment scams affect working-age citizens above 60 more often than experts. Rising efforts for high return scams require regulators to recommend investors work with approved exchanges to protect their money.

Both the private sector and government officials must join forces to build an asset tokenization system that delivers innovative protection to finance. The results of digital asset initiatives will show us the way ahead for digital assets in Malaysian markets.