The Securities Commission Malaysia has amended its guidelines for 'recognized markets' to introduce new requirements for electronic platforms that facilitate the trading of digital assets.

Under the revised guidelines, any financial firm that is interested in operating a digital asset platform is required to apply to the regulator to be registered as a recognised market operator.

Datuk Syed Zaid Albar, the commission's chairman, said: “The new framework is part of the SC’s efforts to promote innovation while ensuring investor protection in the trading of digital assets.” He reminded investors of the risks they ran when dealing in digital assets, including sudden price fluctuations and liquidity risks.

This follows the coming into force of the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 on 15 January.

Any person who is interested in operating a digital asset platform, including those operating within the current transitional period, should have submitted an application to the commission by now.