This article first appeared in Wealth, The Edge Malaysia Weekly on December 29, 2025 - January 4, 2026

About 20% of customers on Malaysia’s licensed digital asset exchanges (DAXs) are from Gen Z, with the number growing at around 10% a year, says Malaysia Digital Asset Platform Association (MDAPA) president Chan Wei Chi.

“I’m unable to disclose the number of young users across all domestic DAXs, but there is consensus that if we look purely at Gen Z (aged between 13 and 28), it is about 20%. If we consider millennials and those younger, the figure is around 40% to 50%,” he says.

Chan, who is also CEO of Kinetic DAX Sdn Bhd, says most young investors are concentrated in urban areas in Selangor, Penang and Johor Bahru.

He notes, however, that the growth rate may not fully reflect the rising participation of young investors, as many trade on overseas platforms that offer a wider range of products.

Contrary to popular perception, Chan says young investors on local DAXs tend to be more conservative, largely due to regulatory limits. Only 23 digital assets have been approved for trading locally, most of which are established tokens such as Bitcoin, Ethereum, Solana, Ripple and Cardano.

“These assets have a longer track record and tend to be less speculative. Young investors who buy them are more likely to hold them for about a year or longer,” he says.

The situation differs for those trading on overseas exchanges, where speculative trading in meme coins and derivatives is more common and the number of young participants can be substantial.

Chan says this difference in product offerings partly explains why the growth rate of young investors trading in digital assets globally outpaces that in Malaysia.

He notes that, locally, traditional asset classes, especially equities, are at least as popular as digital assets among young investors, if not more so. Globally, however, digital assets are clearly more popular.

Religion is another factor that influences adoption. Although some digital assets are certified as shariah-compliant by the Securities Commission Malaysia’s (SC) shariah advisory council, many Muslim investors view excessive speculation as gambling and therefore impermissible. As a result, they tend to favour traditional assets such as equities, which have clearer links to real economic activity.

The domestic digital asset market is now entering a new phase, Chan says.

The SC has issued a consultation paper proposing new guidelines to strengthen the resilience of local DAXs and liberalise several key areas, which could entice young investors currently trading overseas to return to the domestic market.

In September, the SC’s executive director for digital strategy and innovation, Wong Huei Ching, said at the Luno Institutional Digital Asset Conference that the regulator is considering relaxing the approval process for listing digital assets on licensed exchanges.

“Over time, Malaysian investors have become more sophisticated, so we can expect fewer restrictions and more room for DAXs to grow,” Chan says.

Over the past five years, local DAXs have operated conservatively, offering only spot trading without margins or leverage. All new digital asset listings require SC approval.

While this approach initially drew criticism from some industry players, the collapse of unregulated exchange FTX in 2022 underscored the prudence of strong oversight by the regulator, Chan says.

“With some fine-tuning to liberalise the industry, we can definitely attract more investors and investments back onshore,” he adds.

Under the proposed framework, DAXs with a robust framework that adheres to SC requirements could list approved digital assets more quickly, widening product choice for local investors.

Beyond local platforms, Chan agrees that young investors globally tend to be risk-takers. “Young investors chase wealth in fast and high-growth ways. Early-stage digital assets offer that potential, with possible returns exceeding 200%. Such gains are harder to achieve in equities dominated by mature companies.”

Their higher risk appetite is also shaped by circumstances. With less savings than older investors, young people are more inclined towards growth investing than income-generating strategies.

“Gen Z investors are willing to take risks to build wealth. Older investors, having achieved financial security, tend to be more cautious, but given the chance to go back in time, many would likely have behaved the same way,” Chan says.

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