Securities Commission wants to vet tokens before they’re made available to the public
A pre-clearance model for crypto trading
Malaysia’s top financial regulator, the Securities Commission Malaysia (SC), has proposed a new framework that would require all cryptocurrencies traded in the country to be pre-approved by the authority before digital asset exchanges can offer them to users.
According to a consultation paper published on June 28, the SC wants to implement a “green list” approach, under which only regulator-vetted tokens would be eligible for listing. The move is part of a broader effort to boost investor protection, curb scams, and ensure that only tokens with “clear utility and value” make it to the retail market.
👉 Full article via Cointelegraph
What’s in the proposal?
The SC’s official consultation paper outlines:
- A requirement for all tokens to undergo regulatory vetting prior to listing
- A standardised token assessment process led by the SC
- The ability to delist tokens if they no longer meet regulatory or risk standards
- Guidance on token utility, AML compliance, and investor disclosures
The regulator would also reserve the right to review previously approved tokens if their underlying fundamentals or risks change materially.
Exchanges react cautiously
Crypto exchanges operating in Malaysia—such as Luno and Tokenize Xchange—have welcomed the focus on investor protection but raised questions about listing delays, innovation impact, and potential limitations for DeFi or long-tail tokens.
Industry insiders say that while the move mirrors Singapore’s whitelist approach, it could limit access to smaller or emerging tokens unless the SC commits to transparent and efficient evaluation timelines.
Regional context
| Country | Listing regime | Notes |
|---|---|---|
| Singapore | Implicit whitelist (MAS guides but doesn’t pre-approve) | Focus on risk disclosures, not approvals |
| Thailand | Token screening by SEC + exchange self-regulation | Prohibits meme coins and fan tokens |
| Indonesia | Greenlist of 501 approved tokens (as of 2024) | Managed by Bappebti |
| Malaysia | Proposed: SC pre-approval before listing | Centralised model to standardise investor protection |
Malaysia’s new framework aligns it more closely with Indonesia and Thailand, both of which employ regulated token lists rather than leaving decisions to individual exchanges.
What’s next?
The SC is accepting public feedback on the proposal until July 31, 2025, after which final guidelines will be released.
Startups and exchanges are encouraged to participate through the official consultation portal to shape the criteria and timelines that will govern crypto listings going forward.
Bottom line
Malaysia is signaling a shift toward proactive crypto regulation, where the government—not exchanges—decides which tokens are safe for investors. If done transparently and efficiently, the model could serve as a blueprint for other emerging markets trying to balance innovation and consumer safety in the digital asset space.
