Malaysia looks poised to redefine its future relationship with money. An estimated four million of its citizens — around one eighth of the population — will be using cryptocurrencies in 2025, and the south-east Asian nation’s market revenue is flirting with half a billion dollars. That’s after total crypto trading volume in Malaysia jumped to RM13.9 billion in 2024, from RM5.4 billion the previous year. Despite that adoption has recently dipped, hinting at a market that is still finding its footing.
In today’s piece, Disruption Banking examines the state of Malaysia’s crypto industry in 2025 — its growth trends, regulatory landscape, major players, and the challenges ahead.
Crypto User Growth: Expansion Tempered by Volatility
The growth of cryptocurrency users in Malaysia has been impressive. Statista forecasts 4.09 million crypto users (12.77%) and $484.1 million in revenue by the end of this year. Those numbers could swell to 4.74 million users (13.03%) and $502.2 million in revenue by 2026. Average revenue per user (ARPU) sits at about $105 this year. But numbers alone don’t tell the full story.
A Finder.com study last year found that only 15% of Malaysian internet users held crypto — down from 20% the previous year. Despite the pullback, Bitcoin and Ethereum remain by far the most common holdings (35% and 24%, respectively). Men account for 63% of owners, while women make up 37%. This gap points to both an opportunity and a discouraging drawback in broadening crypto inclusion in Malaysia.
Building Malaysia’s Crypto DNA
Malaysia’s crypto ecosystem is more than just trading platforms. Both local startups and established exchanges are shaping Malaysia’s future. Social media site Torum, founded in 2018 in Kuala Lumpur, reportedly connects over 240,000 crypto enthusiasts from a hundred countries. Penang-based PeerHive offers a peer-to-peer lending network for small businesses (SMEs), letting them access global investors through smart contracts.
On the exchange front, Luno Malaysia, HATA Digital, Tokenize, SINEGY DAX, MX Global, and Torum International all operate under Securities Commission of Malaysia (SC) oversight. They provide compliant trading in ringgit and major tokens. Meanwhile, AI-assisted trading tools and gamified token features are on the horizon, showing that Malaysia’s market is not just following trends — it’s experimenting with them in its unique way.
In parallel, Malaysia’s central bank, Bank Negara Malaysia (BNM), has shown strong support. This year, it launched the Digital Asset Innovation Hub during the Sasana Symposium. The hub will support fintech startups, run trial tests in a controlled environment, and improve feedback between innovators and regulators. This effort makes Malaysia a leading fintech competitor in Southeast Asia.
Youth Movement with Institutional Vibes
The crypto movement in Malaysia is largely driven by younger generations. Millennials and Gen Z are attracted by the high-risk, high-reward nature of digital assets and view crypto as a hedge against inflation. While older investors are slowly warming to the idea — especially with increasing institutional products and mainstream acceptance — the generational skew remains clear.
And though Finder.com’s report says male users dominate crypto ownership, there’s rising interest among women, suggesting that more inclusive educational efforts could further expand the user base.
Meanwhile, retail adoption is complemented by deeper institutional involvement. Bank Negara’s hub is one example, but banks and brokers are also exploring blockchain for remittances, lending, and digital identity solutions. It therefore feels safe to say that corporate interest and retail passion are creating a dynamic environment ready for the next wave of growth.
Tightening the Rules but Opening the Path
Malaysia has made huge progress in regulating its crypto ecosystem. Digital tokens became securities under the Capital Markets and Services Order of 2019 and SC now regulates exchanges, token offerings, and custodial services. Anti-money-laundering (AML) regulations require detailed transaction information from senders and recipients.
Cryptocurrencies are not legal tender in Malaysia, but trading and holding them is legal. So long as both parties agree they can be exchanged freely, according to StashAway Malaysia. Licensed exchanges must follow the Recognized Market Operator (RMO) framework, and the SC updated its digital asset guidelines in 2024. These rules are regularly refined to strengthen technology and protect consumers.
In December, the SC took action against unlicensed players: major foreign exchanges like Bybit had to cease Malaysian operations, and services such as Atomic Wallet have been added to an investor-alert list for operating without approval.
Prime Minister Anwar Ibrahim has publicly urged regulators to formulate a crypto-friendly policy framework, so Malaysia does not fall behind, calling for a “radical departure from the old ways” of finance. Overall, Malaysia’s regulatory trend is to integrate crypto into existing financial rules while actively exploring tokenized assets and payment uses.
By 2025, more than 840,000 Malaysians had opened accounts on regulated platforms, according to the Ministry of Digital Malaysia. That figure reflects a growing trust in a transparent, regulated market.
Innovation Meets Risk: Mood Optimistic
Malaysia’s crypto scene stands at a crossroads. On one hand, the country benefits from a stable economy, a young digital-native population, and clear regulatory ambitions. The National Blockchain Roadmap 2021–2025 aligns digital asset growth with national strategy and global standards like those of the FATF. On the other hand, market volatility continues to shake confidence. New regulations bring clarity, but also additional costs for startups and platforms.
Emerging areas such as decentralized autonomous organizations (DAOs), yield farming, and tokenized assets still fall into grey zones. Compliance burdens and a lack of consumer protection may slow smaller innovators who lack legal resources. Security risks, from fraud to cybersecurity risks, require constant vigilance.
Yet the mood remains optimistic. If Malaysia can balance control with creativity, it has a genuine shot at becoming Southeast Asia’s leading crypto hub.
Malaysia’s Crypto Moment is Now
Malaysia’s journey into digital assets is defined by ambition and adaptation. With rising crypto uptake, a maturing regulatory framework, and homegrown innovators pushing boundaries, the country is no longer on the sidelines.
Success will come down to regulators keeping pace with technology, startups holding the fort under new rules, and consumers staying apprised of developments.
The foundations are there. Now the question is whether Malaysia can not only sustain this momentum but also shape the next chapter of global crypto innovation. The world is watching — and Malaysia appears to be ready.
Author: Ayanfe Fakunle
The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.
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