Malaysia is one of the central business hubs in Southeast Asia. Many international companies operate here, and there is a large domestic market. The regulatory system for cryptocurrencies in the country is quite developed and legal. However, it is getting stricter. Among other things, Binance experienced operational problems here.
Country overview
#42
MalaysiaCountry stats
Rating Points
200
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
2.9%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
5
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
971 500
Total amount of crypto users out of the country's total population based on public data.
Taxation points
30
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
131.3
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Moderate danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Difficult
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
None
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Good
Medium
Bad
Malaysia has a Moderate danger security level according to our rating. Jurisdiction has 48.4 points (from 100) for safety level in Numbeo crime rating (1). The homicide level (2) is 0.7 per 100,000 inhabitants a year.
Cryptocurrency isn’t a legal tender (3) in Malaysia; cryptocurrency is not illegal and is regulated by the Securities Commission through the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019 ("Order 2019"), under Capital Markets and Services Act 2007 ("CMSA 2007").
Since crypto payments are banned, crypto salaries are also illegal. However, currently, we don't have a link to the confirmation document.
The Securities Commission Malaysia (SC Malaysia) is the country's primary crypto regulator, which provides crypto exchange licenses. The list of operating(4) companies includes only 5: LUNO, MX, Sinegy, and Tokenize Technology.
The Securities Commission Malaysia (SC Malaysia) has added Huobi Global to its Investor Alert List and other entities the regulator says are operating in the country without official registration.
In the notice(5) SC Malaysia issued via Twitter, the regulator stated that Huobi has been operating a digital asset exchange (DAX)(6) without being registered. The regulator also warned investors of the risks of interacting with the exchange, which includes their inability to seek legal redress in case of monetary losses.
Certain government factions in Malaysia have been working towards making the country a more digital assets-friendly jurisdiction. In March, Bloomberg reported(7) that the Ministry for Communications and Multimedia proposed recognizing digital assets as legal tender.
The registration of RMOs is facilitated(8) through the Guidelines on Recognized Markets issued by the SC ("RMO Guidelines"). Under the RMO Guidelines, DAX is defined as an electronic platform that facilitates digital asset trading.
| Tax name | Index |
| PIT tax Min | 0 |
| PIT tax Max | 30 |
| Corporate tax (CIT) | 24 |
| Min Individual CGT (for crypto) | 0 |
| Max Individual CGT (for crypto) | 0 |
| Wealth tax Min | 0 |
| Wealth tax Max | 0 |
| Mining tax | |
| TDS tax |
PIT
The following rates apply to resident individual taxpayers for the year of assessment 2023 onwards: 1%-30% by PWC(9).
CIT
Headline CIT rate is 24% based on PWC(10).
CGT
Generally, gains on capital assets are not subject to tax, except for profits arising from the disposal of real property in Malaysia, which is subject to RPGT (up to 30%), according to PWC(10).
Malaysia is also a crypto tax-free (11) country. Because cryptocurrencies are not qualified as capital assets nor legal tender by Malaysian authorities - crypto transactions are tax-free for individual investors.
1)Crime Index by Country 2023 Mid-Year
2)List of countries by intentional homicide rate
3)Malaysia Cryptocurrency Regulation - Is it Legal? Article
4)LIST OF REGISTERED DIGITAL ASSET EXCHANGES. Article
5) Huobi Global the SC’s Investor Alert List has been added for operating a digital asset exchange (DAX) in Malaysia without being registered with the SC. Twitter (X)
6)DIGITAL CURRENCY EXCHANGES. Article
7)Malaysia Should Adopt Crypto as Legal Tender, Ministry Says. Article
8)Malaysia: Regulation Of Digital Asset Offering And Trading In Malaysia. Article
9)Individual - Taxes on personal income. PWC
10)Overview. PWC