Digital Asset Exchange (DAX)

DIGITAL ASSET EXCHANGE (DAX)

Introduction to digital assets

Over the past few years, digital assets such as crypto and non-fungible tokens have been gaining in popularity among investors.

Digital assets fall under two main categories;
1) Digital Tokens – A digital representation which is recorded on a distributed digital ledger.
2) Digital Currency – A digital representation of value which is recorded on the blockchain, functions as a medium of exchange and is interchangeable with money.

Malaysians who are interested in digital assets for investment, can invest via digital asset exchanges (DAX) regulated by the SC. For more info on digital assets, you may visit the SC’s Guidelines on Recognized Markets (DAX).

Digital Asset Exchange (DAX)

A digital asset exchange (DAX) is an electronic platform that facilitates the trading of digital assets.
Digital Asset Exchange (DAX) platforms allows investors to trade permitted digital asset such as Bitcoin (BTC), Ether (ETH), Ripple (XRP), Litecoin (LTC) and Bitcoin Cash (BCH).

Trading of digital assets on DAX platforms are open to all investors. Before being allowed to begin to trade, every investor must successfully complete the onboarding process on the respective DAX platform.

For list of registered DAX platforms, please refer to the SC website on registered DAX platform operators.

Why invest with regulated DAX?

To Protect Your Investments
The money invested via the DAX will be kept in a separate trust account for safekeeping. This is to ensure that in case something goes wrong with the DAX, your investment is protected.

To Protect Investor’s Interest
Regulated DAXs need to go through a vigorous application process in order to get a license. This is to ensure investor protection and for them to be held accountable to the laws in Malaysia. If something goes wrong, investors are able to seek redress with the SC in accordance to the Malaysian law.