Malaysia’s crypto trading rises 23% under regulated framework

Malaysia’s regulated digital asset exchanges recorded more than $4 billion in trading value during 2025, Fitch Ratings said Wednesday. Trading value rose 23% from a year earlier, although the market remained small relative to Malaysia’s domestic equity market.

Fitch highlighted Malaysia’s regulatory framework and Shariah treatment of selected cryptocurrencies. The Securities Commission’s Shariah Advisory Council has classified several digital assets as Shariah-compliant, including Bitcoin and Ethereum. Ten digital asset players, including exchanges and custodians, were regulated by the commission at the end of the first half of 2026.

However, bank involvement remains limited, with banks largely providing services to registered digital asset operators. Fitch said crypto adoption across Islamic finance markets will likely develop gradually because Shariah interpretations differ and global Islamic finance bodies lack formal guidance. Meanwhile, Malaysia’s regulator reported RM17.14 billion in 2025 digital asset trading value, reinforcing evidence of expanding regulated activity.