Bursa Malaysia launched a public consultation on proposed rule changes to allow the listing and trading of digital currency exchange-traded funds, marking another step in Malaysia’s push to widen regulated access to digital assets through mainstream capital market products.
The exchange said the proposed amendments follow the Securities Commission Malaysia’s revised Guidelines on Exchange-traded Funds, issued on March 2, which now allow the offering of digital currency ETFs under an enhanced regulatory framework.
The SC said the revisions were aimed at facilitating such products while strengthening the regulatory framework around them.
Bursa said digital currency ETFs would give investors regulated and transparent exposure to digital currencies through an established market vehicle, rather than through direct holdings of the underlying assets.
It added that bringing such funds to market would help broaden and diversify the exchange’s ETF offering.
Under the proposed changes, Bursa plans to tighten disclosure standards in two main areas.
First, issuers of digital currency ETFs would be required to provide specific material information in immediate announcements and annual reports under the Main Market Listing Requirements.
Second, investors would need to sign a risk disclosure statement setting out the key risks of investing in a digital currency ETF before they are allowed to invest, under Bursa Securities directives.
Bursa said the proposals were intended to support product innovation while ensuring adequate investor protection in an evolving market.
The move also dovetails with Malaysia’s new Capital Market Masterplan 2026-2030, released this month, which frames the local market as increasingly diversified and more digitally enabled, with the capital market expanding to RM4.3 trillion in 2025.
The masterplan also notes growing 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 issued a practice note covering the offering of broking services for digital assets, and in June 2025 it sought feedback on proposed enhancements to the framework for digital asset exchanges.
The significance of the proposal is less about opening the floodgates to crypto speculation and more about shifting digital-asset exposure into regulated wrappers familiar to traditional investors.
If approved and adopted by issuers, digital currency ETFs could help Malaysia capture demand from investors who want crypto-linked exposure without using offshore platforms or self-custody.
At the same time, the emphasis on mandatory risk disclosures suggests regulators remain cautious, particularly given the volatility, custody, valuation and liquidity risks tied to digital assets.