The recent revision to the digital asset exchange (DAX) framework announced by the Securities Commission Malaysia (SC) on May 20 is being framed by industry players as a deliberate step towards building a more secure, institution-ready crypto market rather than a reactionary regulatory clampdown.

According to Luno Deputy Country Manager Jeroni Khoo, the updated guidelines were broadly expected after a year-long consultation process and reflect a “progressive approach” to maturing the industry.

He noted that the new requirements, including higher capital thresholds, a 25% shareholders’ fund requirement for operating expenses and an 80:20 cold-to-hot wallet custody ratio, are aimed at strengthening operational resilience and…