Crypto Regulations in Malaysia 2025

The post Crypto Regulations in Malaysia 2025 appeared first on Coinpedia Fintech News In Malaysia, buying and owning crypto is legal, but it is not considered legal tender by the federal government. The country does not recognize cryptocurrency as a payment instrument, but rather as a security under the Prescription Order 2019. Currently, the Securities Commission Malaysia (SC) is actively developing a framework for digital assets, including public consultation on tokenized capital market products. Table of contents Time of Major Crypto Regulations in Malaysia What is the Malaysian Government Saying About Cryptocurrency in 2025? Crypto License in Malaysia Crypto Tax in Malaysia 2025 Crypto Adoption in Malaysia Conclusion FAQs Time of Major Crypto Regulations in Malaysia January 9, 2025– Order 2025 [P.U. (A) 6/2025] Capital Market and Services The Prescription Securities and Digital Currency and Digital Token Order 2019 was amended in 2025. It revised the definition of digital token within the original Order 2019 . It classifies digital assets as securities, empowering SCM to regulate offerings and trading. Date Regulation/ Law Details July 31, 2024 Personal Data Protection Act Data handling requirements for crypto businesses June 2024 Tax Enforcement ( Ops Token ) Crackdown on undeclared crypto income April 1, 2022 Crypto Travel Rule in force Regulated by SCM April 26, 2021 Transposing travel rules to the national framework Prevention of money laundering and terrorist financing in cryptocurrency October 28, 2020 SC’s revised guidelines for crypto Allows companies to raise funds via issuing tokens; approval required by the IEO January 15, 2019 Capita market and services order Digital assets are classified as securities; subject to securities law 2018 Formation of the tax reform committee It is yet to make any changes to digital taxation. What is the Malaysian Government Saying About Cryptocurrency in 2025? In 2025, the Malaysian government is considering introducing new regulations for cryptocurrencies and blockchain technology to align with global trends. While the government is creating new frameworks, the Securities Commission of Malaysia (SCM) is focusing on: Regulating cryptocurrencies as securities Overseeing digital assets trade and issuance Regulating digital assets exchange and Initial Exchange Offering (IEO)platforms. Crypto License in Malaysia The crypto incident framework in Malaysia aims for technical adherence and transparency in its internal structure. The crypto businesses and platforms are subject to strict penalties, including fees, blocked access, and license revocation for non-compliance with crypto laws. Types of crypto licenses in Malaysia: Issuer: The Main purpose is the issuance and offerings of tokens with a minimum of 500 thousand MYR. Startups and fintech projects are applicable for this license. IEO Operator: Serves as an organization of initial public offerings with 5 million MYR. Platforms for attracting investments are required to obtain this license. Digital asset custodian (DAC): The Primary purpose is serving as a storage of digital assets with 500 thousand MYR fees. It applies to custodian services and fintech vaults . List of licensed crypto exchanges in Malaysia 2025: Crypto Exchange Deposit fee Luno Free abiver RM 100 Sinegy Free Tokenize Free MX global Free Hata Free Crypto Tax in Malaysia 2025 Capital gains tax: Profits from buying and selling cryptocurrency as a personal investment are not taxable. Occasional investors are also eligible for this tax-free regime . Tax-free events: Occasional selling, swapping, sending crypto between personal wallets, gifting, donating crypto, airdrops, and using crypto for selling goods are tax-free events. Income tax: Crypto trading as a business with high frequency is taxable as regular income tax, which ranges from 0-30% depending on income brackets. Trading, mining, and receiving crypto as compensation for services are taxable. Reports: For individuals, the tax return deadline is April 30, while for business income, it is June 30 each year. Crypto Adoption in Malaysia Crypto Penetration Rate: The current crypto user penetration rate in Malaysia is projected to be 12.77%, which is expected to increase to 13.03% by 2026. By next year, approximately 4,74 million Malaysians will use cryptocurrencies. Crypto revenue: In 2025, the revenue of the cryptocurrency market is expected to reach US$ 484.1 million and is growing at a rate of 3.74% annually. With growing users, the revenue market of crypto will reach US$ 502.2 million in 2026. Crypto holdings: Malaysian government’s crypto holdings are not publicly disclosed yet; it does not hold crypto reserves like the US, but monitors cryptocurrencies and other digital assets within the financial system. Conclusion Malaysia is one of the countries that does not consider crypto as legal tender, but it has a legal regulatory framework to facilitate it. The country does not even have any specific laws for crypto tax, and this is why Malaysia is recognized as one of the crypto-friendly countries in the world. 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Yes, buying and owning crypto is legal in Malaysia. However, it’s not recognized as legal tender, but rather as a security under the Prescription Order 2019 (amended 2025). How is cryptocurrency regulated in Malaysia? The Securities Commission Malaysia (SC) regulates crypto as securities, overseeing digital asset trading, issuance, exchanges, and IEO platforms. They are actively developing a comprehensive framework. How is cryptocurrency taxed in Malaysia ? Capital gains from personal crypto investments are generally not taxed. However, crypto trading as a frequent business activity, mining, or receiving crypto as compensation is subject to income tax (0-30%). Which government body is responsible for crypto operations in Malaysia? The Securities Commission Malaysia (SC) is the main government body responsible for regulating digital asset operations in the country, including trading, issuance, and safekeeping. Bank Negara Malaysia (BNM) also monitors systemic risks.

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