On 30 January 2026, the Securities Commission Malaysia (“SC”) issued the Practice Note on Offering of Broking Services for Digital Assets (“Practice Note”), setting out requirements and guidance for capital market services licence (“CMSL”) holders who offer broking services for digital assets.
The requirements are summarised as follows:
(1) Notification and Declaration to the SC
A CMSL holder must:
- pre-notify the SC of its intention to offer broking services for digital assets; and
- submit a declaration in the specified format and a third-party validation report, confirming the compliance of its operational policies and procedures with the SC’s guidelines.
(2) Digital Assets Trading
A CMSL holder must only source digital assets from sources prescribed under the Practice Note (such as SC-registered digital asset exchange). The digital assets must have obtained the concurrence of SC — the list of digital assets is available here.
All digital-asset transactions between the CMSL holder and their clients must be conducted on a cash upfront basis. No margin or lending facilities may be provided to the clients for digital-asset trading.
(3) Client Asset Protection
In addition to segregating clients’ assets, a CMSL holder must ensure that clients’ digital assets are held with an SC-registered digital asset custodian (“DAC”), unless the SC approves the appointment of a foreign DAC in writing.
(4) Disclosure & Risk Management
A CMSL holder must make adequate disclosure of information relating to the digital assets to its clients, and maintain manpower and expertise to manage risks.
The Practice Note can be accessed here.
Contact us for further information regarding Corporate/M&A matters.
