BNM Malaysia: VASP and Stablecoin Compliance

Malaysia's two-regulator stablecoin regime — SC licenses RMOs, BNM oversees payment tokens — and what MYRC and licensed exchanges look like in 2026.

An editorial illustration of Malaysia's dual regulatory system guiding digital money through compliance checkpoints
An editorial illustration of Malaysia's dual regulatory system guiding digital money through compliance checkpoints

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