Malaysia’s Securities Commission (SC) has unveiled a proposed regulatory framework for tokenized capital market products, with a consultation running until June 16, 2025. The framework distinguishes “tokenized securities” from cryptocurrencies and utility tokens, while adopting a phased approach that initially focuses on “digital twin” tokens rather than natively digital blockchain assets often referred to as “digital securities”.
The consultation paper outlines how tokenized capital market products – digital representations of traditional securities using distributed ledger technology – will be regulated under a technology neutral principle where “like product and like services will be regulated similarly regardless of the underlying technology.”
As an aside, a European Commission adviser recently observed that all legislation inherently has a bias towards the technology that existed at the time the laws were passed.
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