Malaysia is a tech-forward country that has passed many favorable regulatory policies, both for blockchain technology and crypto.

If you live in Malaysia, or you’re thinking about relocating to take advantage of the country’s forward-thinking approach to digital assets, you’re in luck!

We've rounded up everything you need to know about crypto in Malaysia in 2025 and 2026, including the latest SC regulatory updates, exchange comparison, tax rates, and how to get started.

While this article provides an educational overview, you may want to consult with a tax professional if you’re looking to receive tax and financial advice.

Overview of Crypto in Malaysia

Crypto in Malaysia is legal and classified as a security under the Securities Commission Malaysia (SC) Prescription of Securities Order, which came into operation in January 2019. The SC — not to be confused with its informal abbreviation SCM — is the primary regulator for Digital Asset Exchanges (DAX), Digital Asset Custodians (DAC), and Digital Asset Brokers operating in Malaysia.

In 2025 and 2026, Malaysia's digital asset market expanded significantly. Regulated DAX trading value reached RM 17.14 billion in 2025, up 23% from RM 13.93 billion in 2024. The SC also issued new guidelines in early 2026 that allow licensed stockbrokers to offer digital asset trading, and revised ETF rules to facilitate digital currency ETFs — marking a clear shift toward integrating crypto with Malaysia's mainstream capital markets.

Is Crypto Legal in Malaysia?

Cryptocurrencies are not legal tender in Malaysia, meaning they are not recognized as an official payment method by Bank Negara Malaysia (BNM). However, buying, selling, and trading digital assets is fully legal and regulated.

The Securities Commission Malaysia (SC) governs digital assets under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019. Under this framework, only SC-registered Digital Asset Exchanges (DAX) may legally offer crypto trading services to Malaysian residents.

As of 2026, the regulatory environment has expanded further. A January 2026 SC Practice Note now allows licensed stockbrokers holding a Capital Markets Services Licence (CMSL) to offer broking services for qualifying digital assets. The SC also revised its DAX guidelines in May 2026, introducing stronger investor protections, higher governance requirements, and formal inclusion of DAX operators in the Financial Markets Oversight System (FMOS). The SC has taken administrative action against four unregistered DAX operators under these updated rules.

For investors, this means: you are protected when using a registered DAX, and you now have more pathways to access digital assets through regulated brokers.

Malaysia's Crypto Regulatory Updates

Malaysia's digital asset regulatory framework has evolved significantly in the past 12 months. Here is what changed and what it means for investors:

January 2026: Licensed Stockbrokers Can Now Offer Crypto Trading

The SC issued a Practice Note on 30 January 2026 allowing holders of a Capital Markets Services Licence (CMSL) to offer broking services for certain digital assets that qualify as securities. This means established stockbroking firms — not just dedicated crypto exchanges — can now facilitate digital asset trades. For investors, this may expand access through familiar, regulated financial institutions.

March 2026: Digital Currency ETFs Now Permitted

On 2 March 2026, the SC revised its Exchange-Traded Fund (ETF) guidelines to facilitate the offering of Digital Currency ETFs in Malaysia. This opens a pathway for investors to gain exposure to digital assets through conventional investment vehicles listed on regulated exchanges, without holding crypto directly.

May 2026: Revised DAX Guidelines with Stronger Investor Protections

Effective 20 May 2026, the SC issued revised Guidelines on Recognised Markets for Digital Asset Exchanges. Key changes include:

Streamlined product launches on regulated DAX platforms
Higher governance and financial-resilience requirements for DAX operators
Formal inclusion of DAX operators in the Financial Markets Oversight System (FMOS)
Enforcement actions taken against four unregistered DAX operators

BNM's Tokenisation and Digital Money Roadmap

Bank Negara Malaysia (BNM) continues to advance its tokenised economy agenda under the Financial Sector Blueprint 2022-2026. Active workstreams include ringgit-denominated stablecoins, tokenised deposits, asset tokenisation pilots, and CBDC-readiness initiatives. These are wholesale and institutional-level developments, not retail crypto products, but they signal Malaysia's long-term commitment to digital finance infrastructure.

How to Choose a Crypto Exchange in Malaysia

Not all exchanges available to Malaysian residents carry the same protections. Here is a comparison of your main options:

👉 Quick takeaway: Only SC-registered DAX platforms are legally approved for Malaysian retail users. International exchanges like Binance and Coinbase are not SC-registered and carry regulatory and legal risk for Malaysian users.

Exchange	Type	SC Registered	Supported Assets	Best For
Luno	Local DAX	🟢 Yes	`BTC`, `ETH`, `XRP`, `LTC`, `BCH`, `USDC`	Beginners, MYR deposits 🏆 Best for beginners
MX Global	Local DAX	🟢 Yes	`BTC`, `ETH`, `XRP` and others	Active traders 🏆 Best for active traders
Tokenize	Local DAX	🟢 Yes	`BTC`, `ETH`, `XRP` and others	Intermediate users
Hata	Local DAX	🟢 Yes	`BTC`, `ETH` and others	Broader asset selection 🏆 Best for asset variety among local DAXs
Binance	International	🔴 No	350+ assets	Advanced traders ⚠️ Use at own regulatory risk
Coinbase	International	🔴 No	200+ assets	International access ⚠️ Not SC-registered for Malaysian users

Note: Always verify current registration status at the SC's official digital assets directory before depositing funds. The SC has taken action against unregistered operators.

How to Choose: Decision Framework

Are you a first-time buyer? Use a locally registered DAX (Luno is the most beginner-friendly with MYR bank transfer support).
Do you want the widest asset selection? International exchanges offer more tokens, but carry higher regulatory risk for Malaysian users.
Are you an existing stockbroker client? As of January 2026, your licensed broker may now offer digital asset trading — check with your provider.
Are you a long-term holder? Prioritize security features and withdrawal options over trading fees.

Crypto Tax in Malaysia

There is no capital gains tax in Malaysia. Holding crypto long-term does not trigger a tax liability on its own.

However, if the Inland Revenue Board of Malaysia (IRBM/LHDN) classifies your crypto activity as a trading business, your profits are subject to income tax under the Income Tax Act 1967.

When Are You Considered a Crypto Trader (and Taxable)?

The IRBM applies the 'badges of trade' test. You are likely classified as a trader — and therefore taxable — if:

You hold crypto for a short period before selling
You transact frequently and repeatedly
You use short-term financing to fund crypto purchases
Your primary purpose is profit from price movements rather than long-term investment

Crypto Tax Rates in Malaysia

👉 Quick takeaway: Malaysia uses a progressive tax system. Crypto trading profits classified as income are taxed at your applicable slab rate. Higher-frequency traders and those earning significant crypto income should note the 26-30% rates that apply above MYR 600,000.

Chargeable Income (MYR)	Tax Rate
Up to 5,000	🟢 0%
5,001 – 20,000	🟢 1%
20,001 – 35,000	🟢 3%
35,001 – 50,000	⚠️ 8%
50,001 – 70,000	⚠️ 13%
70,001 – 100,000	⚠️ 21%
100,001 – 250,000	🔴 24%
250,001 – 400,000	🔴 24.5%
400,001 – 600,000	🔴 25%
600,001 – 1,000,000	🔴 26%
Above 1,000,000	🔴 30%

Non-residents: flat 30% on all taxable income.

Example: What Would You Owe?

Scenario: You are a Malaysian resident with a RM 80,000 salary and RM 30,000 in crypto trading profits (total chargeable income: RM 110,000).

Your crypto trading profits fall into the 24% bracket.
Estimated tax on the RM 30,000 trading profit portion: approximately RM 7,200.
Strategy: If the same RM 30,000 gain came from long-term holding rather than active trading, it would not be classified as trading income and may attract no tax.

Always consult a Malaysian tax professional for advice specific to your situation.

What Do You Need to Buy Crypto in Malaysia?

Before purchasing bitcoin or any other crypto in Malaysia, make sure that you have prepared all the required documents.

Whether you are a local citizen or an investor from abroad, you will likely need to have the following documents ready:

A passport, a driver’s license, or a national ID card to complete KYC requirements.
A mobile device to verify your identity via multi-factor authentication.
A secure internet connection.
A personal cryptocurrency wallet, where you can withdraw your assets in order to improve your security.

How to Buy Crypto in Malaysia

Buying crypto in Malaysia is easier than ever. Here’s how:

Create an account on an exchange.

Do your research and find the platform that best fits your requirements. Mind the fees, payment methods, and—most importantly—the security measures offered by these facilities.

Pass the verification process.

Submit the documents required by the platform of your choice to verify your identity.

In most cases, this procedure is quite simple and verification happens instantly. However, the process may take up to a couple of days.

Deposit fiat.

To proceed with the purchase of crypto, link your bank account or a credit card to the exchange and deposit fiat.

Alternatively, you may use other methods offered by the exchange in order to complete your purchase.

Buy crypto.

Depending on the selected deposit method, it may take from a few minutes to a couple of days for the money to arrive in your account.

Once the deposit is complete, you can buy crypto. Typically, crypto exchanges feature dedicated pages for this purpose.

Simply find the asset you want to buy, specify the amount, and finalize the transaction by completing the required verification steps.

Withdraw crypto to a self-custodial wallet.

Storing crypto on a centralized exchange is considered a bad security practice, since it means that you have no control over your private keys.

To eliminate the counterparty risk and protect your assets, make sure that you withdraw them to a personal wallet where only you have access to the private keys.

Best Crypto Wallets in Malaysia

Crypto is borderless, so most crypto wallets are available for anyone wishing to hold crypto in Malaysia.

Some of most popular wallet options include:

Ledger Nano S. This is a device issued by Ledger, one of the most reputable manufacturers of hardware wallets. Delivery to Malaysia usually takes 2-3 weeks.
Trezor Model One. Similar to Ledger, Trezor also represents one of the top-tier manufacturers of hardware wallets with a focus on security.
Coinbase. Those who favor convenience over security may try the web wallet provided by Coinbase, one of the most popular cryptocurrency exchanges. The platform is fully accessible in Malaysia.
MetaMask. MetaMask is one of the most popular wallet choices for anyone wishing to keep self-custody of their funds while using a free web-based option.
SafePal. This is a budget-friendly hardware wallet with 2FA support and a user-friendly interface. Note that SafePal hardware wallets can be ordered and used in Malaysia for self-custody purposes. Binance's exchange services are not registered with the SC for Malaysian users, so exercise caution if using Binance's trading platform directly.
Luno wallet. Luno is one of the licensed local exchanges in Malaysia. Therefore, the tools and services it provides are optimized for this region.

Crypto Mining in Malaysia

Crypto mining is not prohibited in Malaysia. The tax treatment of mining profits is nuanced: mining rewards received may be treated as income at the point of receipt if conducted as a business, while casual or hobby mining may not trigger a tax event. Consult IRBM guidance or a tax professional for your specific circumstances.

Electricity costs remain a key challenge for Malaysian miners. The national grid tariff for high-consumption users is among the higher rates in Southeast Asia, which affects mining profitability. Illegal electricity theft for mining purposes has been a persistent enforcement issue: in 2021, Malaysian authorities recorded an all-time high in illegal mining seizures, confiscating approximately USD 13 million worth of equipment. Enforcement of electricity theft remains active.

Note: The profitability of crypto mining in Malaysia depends heavily on the current BTC price, mining difficulty, and your electricity rate. At current industrial tariff rates, large-scale mining operations may find margins tight compared to regions with subsidized energy.

FAQ

Is Malaysia a Crypto-Friendly Region?

In Malaysia, you only have to pay crypto taxes when you are engaged in day trading. Since there is no capital gain tax on holding crypto long term, and a relatively clear regulatory framework, the country is widely considered to be crypto-friendly.

How Do I Report Crypto Taxes in Malaysia?

In Malaysia, one must submit the income tax return on any crypto trading activities by April 30th. The report can be sent through an official portal called MyTax.

Can I use a stockbroker to buy crypto in Malaysia?

Yes. As of January 2026, the SC issued a Practice Note allowing licensed stockbrokers holding a Capital Markets Services Licence (CMSL) to offer broking services for qualifying digital assets recognized as securities. Check with your existing broker to see if they have activated this service.

What is a Digital Asset Custodian (DAC) and do I need one?

A Digital Asset Custodian (DAC) is a regulated entity that holds digital assets on behalf of clients. DACs are registered with the SC separately from DAX operators. Retail investors typically do not need to engage a DAC directly — your registered exchange handles custody — but institutional or high-net-worth investors may use DAC services for segregated custody.

What happens if I use an unregistered crypto exchange in Malaysia?

Using an unregistered exchange means you have no legal recourse under Malaysian securities law if the exchange fails, is hacked, or withholds your funds. The SC has taken administrative action against four unregistered DAX operators as of May 2026. Always check the SC's official registered digital assets directory before depositing funds.

Is there a crypto ETF available in Malaysia?

The SC revised its ETF guidelines on 2 March 2026 to facilitate Digital Currency ETFs. This opens the door for regulated ETFs offering digital asset exposure on Malaysian exchanges. As of the article's last update, specific product launches are pending; check with your broker or the SC's ETF registry for the latest available products.

Crypto in Malaysia: Complete Guide for 2026