by Jude Ayua

Malaysian Prime Minister H.E. Anwar Ibrahim has said Malaysia plans to develop a national cryptocurrency policy. Anwar disclosed the plan during the Abu Dhabi Sustainability Week (ADSW) 2025 at the Abu Dhabi National Exhibition Centre (ADNEC), where he discussed Malaysia’s stance on cryptocurrency and blockchain technology.

Anwar hinted this move comes after recent discussions with leaders from the United Arab Emirates (UAE) and Binance Co-founder Changpeng Zhao (CZ): “I had lengthy discussions with the Abu Dhabi leadership and Changpeng Zhao, co-founder of the world’s largest cryptocurrency platform Binance.” 

Anwar said he would consult his cabinet to act fast on the proposed initiative, as he likens the fast growing pace of digital finance to artificial intelligence: ”We should not sit idly by and wait and later be forced to do so after others have done it already… This is an evolution which happens quickly and requires us to be equally fast.” He explained further that Malaysia needs to “leave behind the old business model and give meaning to this digital finance policy,” emphasizing the country “should not be left behind while mired in an old financial system.” He added a policy paper would be drafted and presented to the cabinet for endorsement as soon as possible. 

Anwar also disclosed the UAE’s willingness to support the initiative, acknowledging the UAE’s leading role in financial innovation in the Middle East: “They (UAE leaders) feel that they can forge a close cooperation with Malaysia on this issue.”

Read also: Hong Kong’s SFC approves four crypto exchanges.

The Prime Minister emphasized the need for an inter-agency collaboration to conduct risk assessment, identify and address potential challenges in implementing a crypto policy.

“I proposed several months ago how our agencies including Treasury, Securities Commission, and Bank Negara [can] study how Malaysia can explore this so we aren’t left behind. Ensuring that [it] is regulated could safeguard the people’s interests and prevent leakages,” he told Malaysian media in Abu Dhabi.

Anwar also acknowledged that introducing a new financial policy as this would require preparation, emphasizing the need for a comprehensive approach to implementation. “We have to train our personnel, develop competency, and get the players to participate,” he explained.

The Malaysian SC’s support

Malaysia’s Securities Commission (SC) has expressed support for the Prime Minister’s proposed policy to embrace cryptocurrency and digital finance in the country. The SC commended the initiative as aligning with its policy goals to position Malaysia as a key player in the global digital finance.

SC Chairman Datuk Mohammad Faiz Azmi noted that the agency has been shaping the regulatory landscape for digital assets in the country since 2019 through the Capital Markets & Services (Prescription of Securities) (Digital Currency and Digital Token) Order. “We are ready to work with all relevant agencies, including Bank Negara Malaysia, to further develop Malaysia as an innovative and responsible digital finance hub,” he said.

The SC’s approved digital assets in Malaysia include bitcoin, bitcoin cash, cardano, chainlink, ethereum, litecoin, ripple, solana and uniswap. The agency also recognizes six digital asset exchanges as market operators.

Read also: Philippine SEC’s draft Rules on CASPs: Strengths and possible improvements.

Potential partnership with the UAE

Prime Minister Anwar noted the expected support for its proposed policy, and said Malaysia would not be starting from scratch but would rely on the experiences of others including Binance and the UAE. 

“What is pertinent is that we have excellent relations with the UAE. We told them that we would move on this on the condition that we work as partners to ensure that things are on track,” Anwar said.

The UAE has also reportedly offered to support Malaysia in developing its crypto policy. This potential collaboration could help Malaysia establish a framework that will align with global financial standards such as compliance, anti-money laundering and counter-terrorism financing laws, and ease of entry for local start-ups.

Policy considerations

Malaysia’s Prime Minister’s address at the ADSW emphasized the country’s strategic efforts to develop a regulatory framework that would align it with the rapidly evolving digital asset industry. 

The proposed policy development is coming at a strategic time as Malaysian authorities have been closely monitoring the cryptocurrency sector. In December 2023, Malaysian SC ordered a cryptocurrency exchange, Bybit, to cease its operations in the country for operating without prior authorization.

Malaysia’s potential partnership with experts like CZ and a leading crypto nation like the UAE are especially important. CZ’s experience as a Co-founder and former CEO of Binance, the world’s largest crypto exchange, would be valuable to Malaysia’s policy development. The UAE’s involvement could also fast-track the process for Malaysia. As a country that has been progressive in crypto regulation, the UAE’s insights could prove valuable for Malaysia.

Read also: China’s new rules tighten restrictions on crypto transactions.

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Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com

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