Bank Negara Malaysia (BNM) will continue monitoring digital assets in 2025 but reiterated it has no plans to recognise cryptocurrencies as legal tender, the central bank said in its annual report. BNM aims to manage monetary and financial risks while supporting innovation through asset tokenisation and central bank digital currency (CBDC) research. Malaysia’s crypto market remains small, accounting for less than 1% of bank deposits, despite trading volume rising to MYR13.9bn (USD3.13bn) in 2024. While banks engage with registered digital asset players, most remain cautious due to volatility and fraud risks. BNM sees potential in tokenised deposits and plans to issue a discussion paper on asset tokenisation next year.