The Securities Commission Malaysia (SC) has announced that only 22 of 43 digital asset exchanges were allowed to accept new investors after March 1st, calling the period for the continuation of their operations “transitional.” The end of the transitional period will be notified by the SC.

The Malaysian securities regulator said in its statement, “During the transitional period, these platform operators will not be permitted to accept new investors and will only be allowed to facilitate the withdrawal or transfer of client assets with the written instruction of the investor.”

Securities companies that failed to submit their application by March 1st were required to put their business on hold and return all clients’ assets by March 15th.

The SC added, “Members of the public should also take note that this notice does not constitute an approval, authorization or endorsement by the SC of any digital asset platform operators or any digital assets traded on the platforms.”

The list will be updated on a regular basis. Investors are advised to refer to the list if they wish to continue dealing with digital asset exchanges.

Companies wishing to operate outside of the transitional period will have to seek the SC’s permission. Applications will be considered based on relevant requirements.

The Malaysian regulator announced last year it would regulate the issuances of digital assets via initial coin offerings (ICOs) and the trading of digital assets.

Earlier this month, the SC issued two consultation papers to solicit public input on the framework for ICOs and property crowdfunding.

Public feedback will be used to draw eligibility requirements of first-time home buyers, criteria for listed properties on the platform, and obligations of platform operators and financing limits.