SC Seeks Public Feedback on Proposed Framework on Tokenisation of Capital Market Products
The Securities Commission Malaysia invites public input on its proposed framework for tokenised capital market products using distributed ledger technology.
TokenisationConsultationSecuritiesBlockchainDLT
On 6 May 2025, the Securities Commission Malaysia (SC) published a consultation paper to seek public feedback on a proposed framework for tokenised capital market products, which are digital representations of traditional capital market products using distributed ledger technology (DLT). The framework, which covers tokenised shares, bonds, and funds, aims to enhance transparency, efficiency, and investor protection by introducing additional obligations including enhanced disclosure, governance controls, and record and registry requirements. It also outlines technology risk management measures in line with the SC’s Guidelines on Technology Risk Management, addressing cybersecurity, data privacy, and operational resilience. The proposal reaffirms that tokenised products will be treated similarly to conventional capital market products under existing securities regulations. The SC is inviting feedback from a wide range of stakeholders, including potential issuers, licensed intermediaries, technology service providers, institutional investors, legal and compliance professionals, and industry associations. Interested parties are encouraged to discuss their plans with the SC, and the public consultation period runs until 16 June 2025.