Digital Initiatives - Digital | Securities Commission Malaysia

Digital Initiatives

Digital Investment Management (DIM)
DIM is a fund management business incorporating innovative technologies to offer automated discretionary portfolio management services to investors.
Key regulations for DIM can be found in the Licensing Handbook and Guidelines for Compliance Function for Fund Management Companies, in addition to other relevant regulations and guidelines.
Key Fund Management Activities
Understand Investor Needs
Gather investor information
Understand needs & preference
Assess risk-tolerance
Propose Solution
Select asset allocation
Select securities forming investment portfolio
Generate proposals
Implement Solutions
Select asset allocation
Select securities forming investment portfolio
Generate proposals
Monitor Results & Adjust Strategy
Periodic performance review
Dashboards, status-alerts
Rebalancing of portfolio
A DIM company aims to replicate many of the key activities performed by traditional fund managers through online access
Get to know our licensed DIM Intermediaries HERE
Equity Crowdfunding (ECF)

ECF is a form of fundraising that allows start-ups or other smaller enterprises to obtain capital through small equity investments using online platforms to publicise and facilitate such offers to a crowd of investors.

Funding obtained from ECF can be described as `patient capital’ where investors take equity stakes in new companies and are expected to maintain that stake in a long-term manner. The low minimum investment threshold is also meant to attract participation from first-time investors who may choose this type of investment as their first asset class due to having a passion or interest in a particular business or venture.

Key regulation for ECF operators can be found in in the Guidelines on Recognized Markets, in addition to other relevant regulations and guidelines.

Get to know our registered ECF platform operators in Malaysia HERE.
Peer-to-Peer (P2P) Financing

P2P financing is a form of digital innovation that broadens the ability of businesses to obtain financing from a pool of investors via an online platform. Similar to a loan, P2P financing investors provide capital in return for interest payment and repayment of the capital. The SC regulates P2P financing platform operators by registering them as Recognised Market Operators.

Key regulation for P2P financing operators can be found in the Guidelines on Recognized Markets, in addition to other relevant regulations and guidelines.

Get to know our registered P2P financing platform operators in Malaysia HERE.
Digital Asset Exchange (DAX)

A digital asset exchange (DAX) is an electronic platform that facilitate the trading of digital assets. DAX platforms allows investors to trade permitted digital asset such as Bitcoin (BTC), Ether (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH).

In order to implement the regulatory framework on digital assets, the SC and Bank Negara Malaysia (BNM) entered into coordination arrangements to ensure compliance with laws and regulations under the purview of both regulators.

Key regulation for DAX operators can be found in the Guidelines for Recognized Market, in addition to other relevant regulations and guidelines.

Find out more about the list of registered digital asset exchanges HERE.

Frequently-Asked Questions on Digital Asset Exchange HERE.
Initial Exchange Offering (IEO)

Initial Exchange Offerings (IEOs) are an alternative channel for fundraising for innovative businesses through an offering of digital tokens, which can only be conducted via an IEO platform. In 2020 the SC has released the Guidelines on Digital Assets (Guidelines) that outlines the framework for fundraising through a digital token offering, and the regulatory requirements for registering and operating an IEO platform.

Under the Guidelines, IEO platform operators will be required to assess and conduct the necessary due diligence on the issuer, review the issuer’s proposal and the disclosures in the whitepaper, and assess the issuer’s ability to comply with the requirements within the relevant Guidelines, before helping facilitate the offering.

Interested parties who wish to register as an IEO platform operator can start submitting their applications to the SC before the deadline for applications on 15 February 2021. Application and queries related to IEO platform operator can be directed to [email protected].

Key regulation for IEO operators can be found in the Guidelines for Recognized Market, in addition to other relevant regulations and guidelines.
Digital Asset Custody (DAC)

While IEO enables companies to raise funds via the issuance of digital tokens in Malaysia, Digital Asset Custodians (DAC) allow companies to be custodians for digital assets to ensure the protection of investors’ funds from being stolen or misappropriated during a fundraising exercise.

Digital Asset Custodians (DACs) provide custody services for digital assets, playing an important role within the digital asset ecosystem of the Malaysian capital market to safeguard the digital assets of investors.

Key regulation for digital asset custodians can be found in the Guidelines on Digital Assets, in addition to other relevant regulations and guidelines. Application and queries related to DAC can be directed to [email protected].
E-Services

E-Services platforms are online platforms that provide additional investment channels for investors via the partnership formed between e-payment, e-wallet and e-commerce providers with Capital Markets Services License holders to distribute capital market products. Following the amendment to the SC’s Guidelines on Recognized Markets on “e-Services platform”, the chapter details the registration requirements and ongoing obligations for e-service providers.

E-wallets or e-payment operators which are currently subject to the oversight of another sectoral regulator will be required to obtain the prior approval from the said regulator before submitting their application to the SC. For further information, please contact us at [email protected].

Key regulation for E-services operators can be found in the Guidelines on Recognized Markets, in addition to other relevant regulations and guidelines.

Find out more about the list of registered E-Services HERE.

REGULATED FINTECH PLAYERS

Licensed Fintech Operators

Digital Investment Manager (DIM)	Digital Broker	Online Distributor
Akru Now Sdn. Bhd. BH Global Fintech Solutions Sdn. Bhd. GAX MD Sdn. Bhd. Raiz Malaysia Sdn Bhd StashAway Malaysia Sdn. Bhd. UOB Asset Management (Malaysia) Berhad Wahed Technologies Sdn . Bhd.	Rakuten Trade Sdn. Bhd.	iFAST Capital Sdn. Bhd.

Registered Market Operators (RMO)

General	Equity Crowdfunding (ECF)	Peer-to-Peer Financing (P2P)	Digital Asset Exchange (DAX)	E-Services
Bursa Malaysia Bonds Sdn Bhd Bay Supply Chain Technology Sdn Bhd Citibank Berhad IXdot Sdn Bhd	Ata Plus Sdn Bhd Crowdplus Sdn Bhd Crowdo Malaysia Sdn Bhd Ethis Ventures Sdn Bhd Eureeca SEA Sdn Bhd FBM Crowdtech Sdn Bhd Fundnel Technologies Sdn Bhd Leet Capital Sdn Bhd MyStartr Sdn Bhd Pitch Platforms Sdn Bhd	B2B Finpal Sdn Bhd Bay Smart Capital Ventures Sdn Bhd Capsphere Services Sdn Bhd Crowd Sense Sdn Bhd Ethis Kapital Sdn Bhd FBM Crowdtech Sdn Bhd MicroLEAP PLT Modalku Ventures Sdn Bhd Moneysave (M) Sdn Bhd Peoplender Sdn Bhd QuicKash Malaysia Sdn Bhd	Luno Malaysia Sdn Bhd SINEGY Technologies (M) Sdn Bhd Tokenize Technology (M) Sdn Bhd	TNG Digital Sdn Bhd Versa Asia Sdn Bhd

General

Equity Crowdfunding (ECF)

Peer-to-Peer Financing (P2P)

Digital Asset Exchange (DAX)

E-Services

TNG Digital Sdn Bhd
Versa Asia Sdn Bhd