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Bursa Malaysia has launched a public consultation on proposed rule changes to allow listing and trading of funds traded on digital currency exchanges; This marks another step in Malaysia’s effort to expand regulated access to digital assets through mainstream capital markets products.
The exchange said the proposed changes are in line with the Malaysian Securities Commission’s revised Exchange Traded Funds Guidelines, published on March 2, which now allow the offering of digital currency ETFs under an enhanced regulatory framework.
The SC said the revisions are aimed at facilitating such products while also strengthening the regulatory framework around them.
Bursa said digital currency ETFs will provide investors with regular and transparent exposure to digital currencies through an established market instrument, rather than holding the underlying assets directly.
He added that introducing such funds to the market will help expand and diversify the exchange’s ETF offering.
As part of the proposed changes, Bursa plans to tighten information standards in two main areas.
First, digital currency ETF issuers will be required to provide certain material information in emergency announcements and annual reports under the Main Market Listing Requirements.
Secondly, investors will be required to sign a risk disclosure statement setting out the key risks of investing in a digital currency ETF before they are allowed to invest in accordance with Bursa Securities directives.
Bursa said the proposals aim to support product innovation while ensuring adequate investor protection in an evolving market.
The move also coincides with Malaysia’s new Capital Market Master Plan 2026-2030, released this month, which makes the local market increasingly diversified and more digitally enabled, with the capital market expanding to RM4.3 trillion by 2025.
The master plan also highlights increasing maturity in the digital asset segment, including the registration of the fifth and sixth digital asset exchanges and three digital asset custodians.
The consultation comes after a series of digital asset policy steps by Malaysian regulators.
In January, the SC published an implementation note covering the provision of brokerage services for digital assets and sought feedback on proposed improvements to the framework of digital asset exchanges in June 2025.
The significance of the proposal is less about opening the floodgates to crypto speculation than it is about shifting digital asset exposure to the regulated packagers familiar to traditional investors.
If approved and accepted by issuers, digital currency ETFs could help Malaysia capture demand from investors looking to take on crypto-related exposure without using offshore platforms or self-custody.
At the same time, the emphasis on mandatory risk disclosures suggests that regulators remain cautious, especially given the volatility, custody, valuation and liquidity risks associated with digital assets.
