KUALA LUMPUR, May 6 (Xinhua) — Malaysian regulator has on Tuesday published a consultation paper to seek public feedback on a proposed framework for tokenized capital market products.

The Securities Commission (SC) Malaysia said in a statement that the proposed framework seeks to enable the broader exploration of distributed ledger technology (DLT) in capital markets, particularly use cases that enable programmable assets, fractional ownership, improved transparency and efficiency in record keeping, while ensuring investors’ protection.

It is noted that the SC has observed growing interest among capital market participants seeking to offer tokenized capital market products or undertake regulated activities relating to tokenized capital market products.

Tokenized capital market products refer to the digital representation of capital market products using DLT, such as tokenized shares, tokenized bonds and tokenized funds.

According to the statement, the consultation paper is intended to generate discussions and seek public feedback in relation to the requirements as set out under the proposed framework.

The SC highlighted that even though tokenized capital market products leverage DLT, they are still treated the same as conventional capital market products under existing regulations.

Accordingly, the proposed framework is intended to be read in conjunction with existing securities laws and guidelines to ensure consistency in regulatory treatment. ■