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Crypto Regulations in Malaysia 2025: A Comprehensive Overview
Malaysia has taken a significant step towards regulating the cryptocurrency space by issuing several regulations and guidelines to ensure transparency, stability, and protection for investors. The country’s regulatory framework is designed to align with international standards, providing a conducive environment for innovation and growth.
The Malaysian government has emphasized that buying and owning crypto is legal in Malaysia, but it does not recognize cryptocurrency as a payment instrument. Instead, it classifies digital assets under the Prescription Order 2019, which empowers the Securities Commission of Malaysia (SC) to oversee their trading, issuance, exchanges, and Initial Exchange Offerings (IEOs).
One of the major updates is that Bank Negara Malaysia (BNM) is planning to innovate the traditional banking system by allowing Bitcoin and XRP as a payment alternative. This step aims to provide consumer protection, regulatory clarity, and address price volatility.
In addition, the SC has been actively developing a comprehensive framework for digital assets, including public consultation on tokenized capital market products. The government’s objective is to create an environment that fosters innovation while ensuring the safety of investors’ funds and preventing fraud risks in the crypto landscape.
Crypto License in Malaysia
The SC has introduced several types of crypto licenses to ensure compliance with regulatory requirements. These licenses are designed for various entities, including startups and fintech projects seeking to issue tokens with a minimum requirement of MYR 500,000. The BNM will focus on consumer protection, providing regulatory clarity, addressing price volatility, and creating a robust technological framework.
It is crucial for crypto businesses and platforms to adhere to the regulations to avoid strict penalties, such as fines, blocked access, and license revocation. This strict adherence ensures that investors are protected, and the market remains transparent and trustworthy.
Crypto Tax in Malaysia 2025
The Malaysian government has set clear guidelines on the taxation of cryptocurrency. Capital gains from personal crypto investments are not taxable, providing a tax-free regime for occasional investors. In contrast, any crypto trading activity, mining, or receiving digital assets as compensation for services is subject to income tax, ranging from 0-30% depending on the user’s income bracket.
Reports have been published, and the deadline for individual taxpayers to submit their returns is April 30th. Businesses must file their reports by June 30 annually.
Crypto Adoption in Malaysia
The cryptocurrency penetration rate in Malaysia is projected to reach an astonishing 12.77% by the end of 2025 and is expected to rise further in the coming years, reaching a staggering 13.03% by 2026. By then, roughly 4.74 million Malaysians are anticipated to use cryptocurrencies.
Malaysia’s revenue from cryptocurrency transactions is forecasted to reach US$484.1 million in 2025, with an annual growth rate of 3.74%. As the user base grows, the revenue market will likely exceed US$502.2 million by next year.
It remains unclear whether Malaysia holds any crypto reserves publicly or privately; however, it is essential to note that it does not recognize cryptocurrency as a payment instrument but rather considers digital assets under the Prescription Order 2019.
Source: coinpedia.org
