Malaysia: Implemented Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019

On 15 January 2019, the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order was implemented. The Order classifies specific digital currencies and tokens as securities from 15 January 2019. The Order defines digital currencies as representations of value recorded on distributed ledgers, functioning as exchange mediums where returns are expected but not backed by government or central banks. The Order also clarifies that digital tokens represent pooled rights or interests, where investors contribute and expect returns without managing the assets directly. Both are subject to securities laws, though they are not considered shares, debentures, or units in trust schemes.