The digital assets industry is at a pivotal crossroads, and long-term, sustainable growth will depend on greater institutional buy-in and adoption.
Malaysia’s Digital Minister, Gobind Singh Deo, in his address at this morning’s Luno Institutional Digital Asset Conference 2025, said governance, capital, and innovation from established financial institutions could accelerate the next phase of development.
“There are several factors that can encourage digital asset adoption. The two key elements are trust and interoperability,” he told industry leaders from traditional finance and the Web3 ecosystem.
“On this note, we have clear legal and regulatory frameworks to build trust and prevent misuse.
“But trust must be earned. More effort must go into winning the hearts and minds of users, assuring them that our digital space is safe, secure, and reliable.”
Gobind added that besides trust, consumers expect a seamless digital experience.
“It is equally crucial to have interoperability standards that ensure the smooth integration of digital asset systems, making them compatible with existing payment platforms and mobile wallets,” he said.
He noted that the digital asset ecosystem is maturing rapidly and offers traditional financial institutions an opportunity to diversify their portfolios.
“With digital currencies, decentralised finance, and blockchain technology driving innovation, digital assets are now a growing asset class that must be embraced for long-term sustainability,” he said.
“Today’s conference provides exactly this – a platform to deepen understanding, exchange ideas, and explore how institutions can responsibly integrate digital assets into their offerings. It can also help strengthen public trust in digital assets.”
Gobind reminded participants that digitalisation has always been central to Malaysia’s national agenda.
“Under the Financial Sector Blueprint 2022–2026, Malaysia is positioning itself as a forward-thinking nation ready to embrace digital finance innovations, where digital assets will play a key role in the evolution of financial markets,” he said.
“In 2019, Malaysia became one of the first countries in the region to regulate the digital asset industry. This ensured Malaysians could access digital assets safely and securely while allowing the industry to grow in a regulated environment.
“Through the Securities Commission’s Recognised Market Operator framework, we introduced clear guidelines to regulate digital asset exchanges. We continue to strengthen this landscape with a clear focus on security and responsible innovation.
“As a result, nearly two million Malaysians today have safe access to digital assets.”
Gobind said with these frameworks, Malaysia aims to remain at the forefront of technological innovation and competitive on the global stage.
