BNM Malaysia: VASP and Stablecoin Compliance
TL;DR Malaysia regulates stablecoins through a two regulator split : the Securities Commission (SC) licenses crypto exchanges as Recognised Market Operators (RMOs), while Bank Negara Malaysia (BNM) oversees any use of digital tokens for payments under the Financial Services Act. MYR pegged stablecoins remain limited (MYRC is the principal example) but USD stablecoin volume on Luno Malaysia, Tokenize Xchange, and SINEGY drives significant retail activity. Stablecoins are not legal tender — businesses can accept them but only by mutual agreement. The regulatory framework Malaysia's digital asset regime sits at the intersection of two statutes: 1. Capital Markets and Services Act 2007 , administered by the SC — covers digital assets as a securities like instrument and licenses Recognised Market Operators (RMOs) 2. Financial Services Act 2013 , administered by BNM — covers any digital token used as a payment instrument or stored value facility A stablecoin can fall into either bucket depending on use: If traded on an exchange as a digital asset → SC regime If used to pay merchants for goods and services → BNM regime If used to represent a deposit like claim → potentially banking business under the Financial Services Act BNM has consistently held that digital tokens including stablecoins are not legal tender in Malaysia. Merchants are not obliged to accept them. Who is licensed today As of 2026, SC recognised Market Operators (RMOs) include: Luno Malaysia — largest by volume, Singapore rooted Tokenize Xchange — broad coin coverage SINEGY — independent local exchange MX Global — institutional leaning Hata — newer mobile first entrant Only these five venues (and any subsequent RMO additions) may legally offer stablecoin trading to Malaysian retail users. The full list is published at sc.com.my. For stablecoin issuers A Malaysian domiciled stablecoin issuer would need to navigate both regulators: 1. SC engagement : register the token as a digital asset and obtain RMO listing approval 2. BNM engagement : if the token is intended for payments, obtain an electronic money issuer (EMI) approval under the Financial Services Act 3. Capital : BNM EMI minimum paid up capital is MYR 5,000,000 ; SC RMO requirements are activity specific 4. Reserves : 1:1 fiat reserves at BNM supervised banks 5. AML/CFT : full compliance with BNM's AMLA/AMLAFT 2001 standard, including Travel Rule for transfers above MYR 50,000 6. Local incorporation : must be a Malaysian Sdn Bhd In practice, MYRC and other ringgit pegged tokens have launched under SC approved venues without separate BNM EMI licensing — they trade as digital assets rather than function as payment instruments. For businesses Businesses may accept stablecoins by mutual agreement but should treat the activity as: A foreign currency or commodity like transaction (not a payment transaction in the BNM sense) Subject to ordinary income tax if the activity is commercial; not subject to capital gains tax for individual gains since Malaysia does not levy capital gains tax on individuals Always consult LHDN (Inland Revenue Board) guidance for the specific facts. For developers and integrators Integrate only with SC registered RMOs for fiat on/off ramps for Malaysian users Geo fence payment rail products until BNM engagement is complete Treat MYR denominated stablecoin issuance as a dual regulator question — engage SC and BNM in parallel The MYR stablecoin landscape MYRC is the principal MYR pegged stablecoin trading on Malaysian RMOs. Several local fintechs have explored ringgit stablecoin issuance but BNM and SC approval for a full retail launch has been limited. USD stablecoins (USDT, USDC) dominate volume by a wide margin. What to watch in 2026 SC Digital Assets framework refresh — broader scope for stablecoin listing and disclosure BNM Digital Asset Policy Document — expected H2 2026, expected to clarify payment token vs digital asset classification First fully BNM EMI licensed MYR stablecoin — at least one applicant is reportedly in late stage review Where to learn more SC RMO list: sc.com.my BNM Financial Services Act: bnm.gov.my See also: our Malaysia stablecoins page for live prices.