Regulatory Sandbox - Digital | Securities Commission Malaysia

Regulatory Sandbox

The SC recognises the rapid evolution of technology, leading to innovations cutting across multiple products and services which may not fully fit into existing regulatory framework(s). Hence, the regulatory sandbox provides a controlled environment for corporations to test new innovations while implementing appropriate safeguards to ensure adequate investor protection.

Corporations developing solutions that add value to the capital markets in areas such as financial inclusiveness, Islamic finance, sustainability, retirement solutions and improving market efficiency are encouraged to apply to the regulatory sandbox.

Key Objectives

To address market needs through facilitating the testing of innovative capital market products and services
To identify opportunities to enhance regulatory policies and best practices.
To provide a controlled environment to test innovative solutions that contributes to sustainable market vibrancy and to adapt to evolving demands of the market.

Eligibility Criteria

Requirements for the Proposed Solution
Be an innovative capital market product or service
Not be currently present or available in Malaysia
Bring benefit to the Malaysian capital market
Be intended for use in Malaysia
Not fully fit any of the SC's existing regulatory framework
Requirements for the Corporation
Be fit and proper
Demonstrate readiness to offer and test the intended capital market product or service (including having the necessary testing plans and plans to exit the Sandbox)
Demonstrate readiness to deploy the intended capital market product or service on a commercial scale upon successful testing
Conduct adequate regulatory and risk assessment

* Please refer to the Guidelines on Regulatory Sandbox for the complete eligibility criteria and requirements

Permissible time-period for testing

Successful participants admitted into the regulatory sandbox will be permitted a time period of twelve (12) months, or a duration as approved by the SC, to test their proposed solution. The testing will commence in two batches, with participant start dates scheduled for either January 2026 or July 2026 based on their assessed readiness.

Participants currently in the Regulatory Sandbox

Approval in Principal

The Securities Commission (SC) has granted an Approval in Principle for the following participants to enter the Regulatory Sandbox. Final approval depends on meeting additional requirements in the testing plan before deployment.

No.	Key Areas	Company Name	Company Registration No.
1.	Real estate investment	Wahed X Sdn Bhd	1501114-X
2.	Real estate investment	Urban NX Sdn Bhd	1568090-U
3.	Secondary market platform	Kapital DX Sdn Bhd	1378663-V
4.	Secondary market platform	Pitch Platforms Sdn Bhd	1158464-T
5.	Alternative financing	PeerHive (M) Tech Sdn Bhd	1551079-D
6.	Alternative financing	Virtual Technology Economy Sdn Bhd	1445588-M

Learn More about the Regulatory Sandbox

Applications for the Sandbox are now closed.

Information and Documents for Applicants

Guidelines on Regulatory Sandbox

Regulatory Sandbox Application Guide

Application Form

Prospective clients go online to define their:

Financial characteristics
Risk profile
Financial goals

by answering a series of questions in an online questionnaire.

Based on the risk profile, a proprietary algorithm is run to define the best suited, personalized investment portfolio to minimize risk and maximize performance.

The resulting investment recommendation is displayed online for future clients to visualise the potential gains and losses of the proposal, as well as a more or less detailed composition of the proposed portfolio with exposure levels and target underlying securities.

The empowered investor can accept and proceed with an online transfer/account opening.

The algorithm will provide discretionary management services steered by the risk profile and investment allocation.
Customers will be able to track their investment performance anytime anywhere on their mobile.