<figure class="wp-block-image size-large"><img width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022300/Crypto-in-Malaysia-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022300/Crypto-in-Malaysia-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022300/Crypto-in-Malaysia-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022300/Crypto-in-Malaysia.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/17022300/Crypto-in-Malaysia-1024x576.webp" alt="Crypto in Malaysia" class="wp-image-5505"/></figure><p>Malaysia is a tech-forward country that has passed many favorable regulatory policies, both for blockchain technology and crypto. </p><p>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! </p><p>We’ve rounded up everything you need to know about crypto in Malaysia in 2024.</p><p>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. </p><h2 class="wp-block-heading tablecontent">Key Takeaways</h2><ul><li><strong>Buying and trading crypto is legal in Malaysia</strong>, with the country having favorable conditions for crypto businesses and their customers.</li><li><strong>Definition of crypto</strong>: the Securities Commission Malaysia (SCM) defines all cryptocurrencies as securities.</li><li><strong>Crypto taxes</strong>: there is no capital gains tax on crypto in Malaysia. But, if you profit from trading activities, you have to pay an income tax ranging from 3% to 30%.</li><li><strong>Strategies for reducing tax liability</strong>: In Malaysia, holding your crypto as a long-term investment may exempt you from having to pay crypto taxes.</li></ul><h2 class="wp-block-heading tablecontent">Overview of Crypto in Malaysia</h2><p><strong>Crypto in Malaysia is legal and classified as a security</strong>. These assets are regulated by the Securities Commission Malaysia (SCM), per an <a href="https://www.sc.com.my/api/documentms/download.ashx?id=8c8bc467-c750-466e-9a86-98c12fec4a77" target="_blank" rel="noreferrer noopener">order</a> that came into operation in 2019.</p><p>In addition to the SCM, another key entity regulating crypto activities in this region is the Inland Revenue Board of Malaysia (IRBM), which is also known as Lembaga Hasil Dalam Negeri (LHDN).</p><p>With its strong focus on IT industry development, Malaysia stands out from several of its peers in Southeast Asia. </p><p>With the vigorous growth of blockchain’s popularity worldwide, Malaysian authorities turned their attention to blockchain technology as well. </p><p>As the Malaysian Finance Minister Lim Guan Eng <a href="https://theedgemalaysia.com/article/guan-eng-sc-regulate-digital-currencies-starting-tomorrow" target="_blank" rel="noreferrer noopener">said in 2019</a>, “The Ministry of Finance views digital assets, as well as its underlying blockchain technologies, as having the potential to bring about innovation in both old and new industries.”</p><p>Thus, Malaysia has introduced a clear regulatory framework for this new technology. </p><h2 class="wp-block-heading tablecontent">Is Crypto Legal in Malaysia?</h2><p>Cryptocurrencies are not legally recognized as a payment method in Malaysia due to their high volatility. The Central Bank of Malaysia, also known as Bank Negara Malaysia or shortly BNM, released <a href="https://www.theguardian.com/technology/2014/jan/06/malaysian-central-bank-warns-against-bitcoin" target="_blank" rel="noreferrer noopener">a clear statement</a> on this question in January 2014. </p><p>Yet cryptocurrencies are not banned by any means. In Malaysia, you can freely use crypto for payment purposes upon the agreement with the receiver.</p><p>Notably, back in 2018, a businessman in Sabah <a href="https://www.straitstimes.com/asia/se-asia/land-deal-in-sabah-sealed-using-bitcoin#:~:text=Yee%20said%20he%20agreed%20to,was%20valued%20at%20RM77%2C665." target="_blank" rel="noreferrer noopener">purchased a piece of land</a> for half a bitcoin (which was worth about $12,600 USD at the time).</p><h2 class="wp-block-heading tablecontent">Crypto Tax in Malaysia</h2><figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022418/Crypto-Taxes-in-Malaysia-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022418/Crypto-Taxes-in-Malaysia-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022418/Crypto-Taxes-in-Malaysia-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022418/Crypto-Taxes-in-Malaysia.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/17022418/Crypto-Taxes-in-Malaysia-1024x576.webp" alt="Crypto Taxes in Malaysia" class="wp-image-5506"/></figure><p>There is <strong>no capital gain tax</strong> in Malaysia, and the act of holding or selling your crypto does not inherently mean that you have to pay any form of tax.</p><p>Yet,<strong> there is still an income tax</strong> that one must pay when deriving profits from active trading. </p><p>For residents, this tax <strong>ranges from 3% to 30%</strong> depending on your total income from all sources. Non-residents, on the other hand, have to pay a flat rate of 30% on their total taxable income.</p><p>If any of the characteristics below apply to your crypto activities, you will qualify as a day trader and be subject to taxes:</p><ul><li>A short period of ownership.</li><li>High frequency of repetitive transactions.</li><li>Short-term financing for buying crypto.</li><li>Business-related goals.</li></ul><p>As a result of Malaysia’s current crypto tax framework, holding your assets over the long term can be a way to not be liable to pay taxes on your crypto.</p><h2 class="wp-block-heading tablecontent">Crypto Mining in Malaysia</h2><figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022643/Crypto-Mining-in-Malaysia-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022643/Crypto-Mining-in-Malaysia-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022643/Crypto-Mining-in-Malaysia-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022643/Crypto-Mining-in-Malaysia.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/17022643/Crypto-Mining-in-Malaysia-1024x576.webp" alt="Crypto Mining in Malaysia" class="wp-image-5509"/></figure><p>Crypto mining is not prohibited in Malaysia, and the profits derived from these activities are not considered taxable.</p><p>However, <a href="https://www.malaymail.com/news/malaysia/2023/06/27/higher-electricity-tariffs-for-high-consumption-households-in-malaysia-will-ev-charging-be-more-expensive/76567" target="_blank" rel="noreferrer noopener">the country’s electricity costs are quite high</a>, especially for high-consumption households. As a result, the temptation to find shady workarounds for this issue is also high among local miners. </p><p>As a consequence, <a href="https://www.scmp.com/news/asia/southeast-asia/article/3169425/malaysian-electric-utility-goes-after-illegal-bitcoin?campaign=3169425&amp;module=perpetual_scroll_0&amp;pgtype=article" target="_blank" rel="noreferrer noopener">news about miners</a> who tamper with meter installation or gain illegal connections often pops up in the media. In 2021, Malaysia recorded an <a href="https://ca.finance.yahoo.com/news/malaysia-records-time-high-illegal-171223683.html" target="_blank" rel="noreferrer noopener">all-time high in illegal crypto mining activities</a>, with authorities confiscating $13 million USD worth of mining equipment.</p><h2 class="wp-block-heading tablecontent">Crypto Exchanges in Malaysia</h2><figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022509/Crypto-Exchanges-in-Malaysia-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022509/Crypto-Exchanges-in-Malaysia-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022509/Crypto-Exchanges-in-Malaysia-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022509/Crypto-Exchanges-in-Malaysia.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/17022509/Crypto-Exchanges-in-Malaysia-1024x576.webp" alt="Crypto Exchanges in Malaysia" class="wp-image-5507"/></figure><p>As a crypto-friendly country, crypto users in Malaysia can access a wide range of global crypto exchanges, including:</p><ul><li>Kraken</li><li>Coinbase</li><li>Coinmama</li><li>OKX</li><li>ByBit</li></ul><p>At the same time, people also have the option to take advantage of offerings from local crypto businesses that are headquartered in Malaysia. At the time of writing, the <a href="https://www.sc.com.my/regulation/guidelines/recognizedmarkets/list-of-registered-digital-asset-exchanges" target="_blank" rel="noreferrer noopener">Securities Commission Malaysia</a> lists six licensed crypto exchanges:</p><ul><li>Hata.io</li><li>Luno</li><li>MX Global</li><li>SINEGY</li><li>Tokenize</li><li>Torum</li></ul><h2 class="wp-block-heading tablecontent">What Do You Need to Buy Crypto in Malaysia?</h2><p>Before purchasing bitcoin or any other crypto in Malaysia, make sure that you have prepared all the required documents. </p><p>Whether you are a local citizen or an investor from abroad, you will likely need to have the following documents ready:</p><ul><li>A passport, a driver’s license, or a national ID card to complete KYC requirements.</li><li>A mobile device to verify your identity via multi-factor authentication.</li><li>A secure internet connection.</li><li>A personal cryptocurrency wallet, where you can withdraw your assets in order to improve your security.</li></ul><h2 class="wp-block-heading tablecontent">Best Crypto Wallets in Malaysia</h2><figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022619/Crypto-Wallets-in-Malaysia-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022619/Crypto-Wallets-in-Malaysia-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022619/Crypto-Wallets-in-Malaysia-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022619/Crypto-Wallets-in-Malaysia.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/17022619/Crypto-Wallets-in-Malaysia-1024x576.webp" alt="Crypto Wallets in Malaysia" class="wp-image-5508"/></figure><p>Crypto is borderless, so most crypto wallets are available for anyone wishing to hold crypto in Malaysia.</p><p>Some of most popular wallet options include:</p><ul><li><strong>Ledger Nano S</strong>. This is a device issued by Ledger, one of the most reputable manufacturers of hardware wallets. Delivery to Malaysia <a href="https://support.ledger.com/hc/en-us/articles/4403013285137-How-long-will-it-take-for-my-order-to-reach-me?support=true" target="_blank" rel="noreferrer noopener">usually takes 2-3 weeks</a>.</li><li><strong>Trezor Model One</strong>. Similar to Ledger, Trezor also represents one of the top-tier manufacturers of hardware wallets with a focus on security.</li><li><strong>Coinbase</strong>. 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.</li><li><strong>MetaMask. </strong>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.</li><li><strong>SafePal</strong>. This is a budget-friendly hardware wallet with 2FA support and a user-friendly interface. Although Binance (which backs this product) is prohibited from operating in Malaysia, one may still order its products in this region.</li><li><strong>Luno wallet</strong>. Luno is one of the licensed local exchanges in Malaysia. Therefore, the tools and services it provides are optimized for this region. </li></ul><h2 class="wp-block-heading tablecontent">How to Buy Crypto in Malaysia</h2><figure class="wp-block-image size-large"><img loading="lazy" width="325px" height="183px" srcSet="https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022753/How-To-Buy-Crypto-in-Malaysia-300x169.webp 300w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022753/How-To-Buy-Crypto-in-Malaysia-1024x576.webp 1024w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022753/How-To-Buy-Crypto-in-Malaysia-768x432.webp 768w, https://d2ly46a6b1u3g6.cloudfront.net/wp-content/uploads/2024/06/17022753/How-To-Buy-Crypto-in-Malaysia.webp 1200w" sizes="(max-width: 425px) 150px, 450px" src="https://ll-blog-dev.s3.ap-southeast-2.amazonaws.com/wp-content/uploads/2024/06/17022753/How-To-Buy-Crypto-in-Malaysia-1024x576.webp" alt="How To Buy Crypto in Malaysia" class="wp-image-5510"/></figure><p>Buying crypto in Malaysia is easier than ever. Here’s how:</p><ol><li><strong>Create an account on an exchange.</strong></li></ol><p>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.</p><ol start="2"><li><strong>Pass the verification process.</strong></li></ol><p>Submit the documents required by the platform of your choice to verify your identity.</p><p>In most cases, this procedure is quite simple and verification happens instantly. However, the process may take up to a couple of days.</p><ol start="3"><li><strong>Deposit fiat.</strong></li></ol><p>To proceed with the purchase of crypto, link your bank account or a credit card to the exchange and deposit fiat. </p><p>Alternatively, you may use other methods offered by the exchange in order to complete your purchase.</p><ol start="4"><li><strong>Buy crypto.</strong></li></ol><p>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.</p><p>Once the deposit is complete, you can buy crypto. Typically, crypto exchanges feature dedicated pages for this purpose.</p><p>Simply find the asset you want to buy, specify the amount, and finalize the transaction by completing the required verification steps.</p><ol start="5"><li><strong>Withdraw crypto to a self-custodial wallet.</strong></li></ol><p>Storing crypto on a centralized exchange is considered a bad security practice, since it means that you have no control over your private keys. </p><p>To eliminate the counterparty risk and protect your assets, make sure that you withdraw them to a <strong><a href="https://www.thecoinzone.com/defi/the-mass-exodus-to-self-custody-wallets" target="_blank" rel="noreferrer noopener">personal wallet</a></strong> where only you have access to the private keys.</p><p>FAQ</p><h5 class="wp-block-heading">Is Crypto Legal in Malaysia?</h5><p>While cryptocurrencies are not legal tender in Malaysia, purchasing digital assets for trading or investing purposes is not prohibited. One may buy or sell crypto in Malaysia on any of the licensed local exchanges as well as on international platforms.</p><h5 class="wp-block-heading">Is Malaysia a Crypto-Friendly Region?</h5><p>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.</p><h5 class="wp-block-heading">How is Crypto Taxed in Malaysia?</h5><p>Malaysia has no capital gains tax on crypto, with day trading activities being subject to regular income tax. This means that the amount of tax you owe on day trading profits ranges between 3% and 30% for residents, and a flat rate of 30% for non-residents.</p><h5 class="wp-block-heading">How Do I Report Crypto Taxes in Malaysia?</h5><p>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 <a href="https://mytax.hasil.gov.my/">MyTax</a>.</p>

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Crypto in Malaysia (Complete Guide for 2024)

Read this guide to learn everything you need to know about the status of crypto in Malaysia for 2024.