according to the website - By CoinoMedia
Malaysia has given the green light to custodial storage of Ethereum without the approval of the Securities and Exchange Commission (SEC)
As a positive event for the Southeast Asian crypto market, Malaysia has officially given the green light to custodial services for Ethereum without the need for prior approval from the Securities Commission (SC). This marks an important shift in regulation and simplifies the process for companies wishing to offer custodial solutions for ETH in the country.
Previously, companies had to go through regulatory barriers and wait for SC approval before working with client assets such as Ethereum. The removal of this requirement is seen as a step towards creating a more innovation-friendly crypto environment in Malaysia.
An incentive for local and international companies working with Web3
This regulatory change is expected to accelerate the entry of startups, exchanges, and custodial Web3 companies into the Malaysian market. By eliminating bottlenecks related to prior approval, companies will now be able to implement ETH custodial services more quickly for both retail and institutional clients.
This policy update also positions Malaysia ahead of many countries in the region regarding digital asset regulation. It may encourage more blockchain and DeFi projects to consider the country as a hub for their operations in Southeast Asia.
Malaysia's actions align with a broader global trend of loosening regulatory constraints to attract crypto innovations. By allowing Ethereum storage without bureaucratic red tape, the country signals its intention to become a key player in the Web3 space.
While some caution remains regarding investor protection and compliance, this decision reflects a balance between regulatory oversight and industry growth. It is a victory for crypto entrepreneurs and an optimistic sign for the adoption of Ethereum in Asia.
