In Malaysia, buying and owning cryptocurrency is legal, though the federal government does not consider it legal tender. This article reviews the key aspects of regulation, taxation, and cryptocurrency adoption in the country for 2025.
Key Changes in Cryptocurrency Regulation
As of January 9, 2025, amendments to the Order on Capital Markets and Services will come into force. This revision redefines digital tokens and classifies digital assets as securities, empowering the Securities Commission of Malaysia (SC) to regulate their offerings and trading. Key dates and changes in legislation include:
- July 31, 2024 — implementation of the Personal Data Protection Act, regulating data handling for crypto companies. - April 1, 2022 — introduction of the Crypto Travel Rule. - October 28, 2020 — revised SC guidelines allowing companies to raise funds through token issuance.
What the Malaysian Government is Saying about Cryptocurrency in 2025
In 2025, the Malaysian government is considering new regulations for cryptocurrencies and blockchain technology to align with global trends. Key focuses include:
- Regulating cryptocurrencies as securities. - Overseeing digital asset trading and issuance. - Regulating Initial Exchange Offering (IEO) platforms for investment attraction.
Taxation and Use of Cryptocurrency in Malaysia
Taxation policies on cryptocurrencies in Malaysia have specific characteristics.
- Profits from buying and selling cryptocurrency as a personal investment are not taxable. - Transactions like swapping or gifting cryptocurrency are also tax-free. - High-frequency trading is taxed as business income at rates ranging from 0% to 30%. - Tax return deadlines are April 30 for individuals and June 30 for businesses.
Malaysia does not recognize cryptocurrency as legal tender but is creating a regulatory environment for its use. Despite the lack of explicit laws regarding taxation, the country maintains strict regulations to prevent fraud and protect investors.
