In Malaysia, the purchase and possession of crypto are legal, but it is not considered the legal of the federal government. The country does not recognize cryptocurrency as a payment instrument, but rather as a guarantee under the 2019 prescription order.
Currently, the Securities Commission Malaysia (SC) actively develops a framework for digital assets, including public consultation on products from the token capital market.
Time of major cryptography regulations in Malaysia
January 9, 2025 – Order 2025 [P.U. (A) 6/2025] Capital and services market
- The prescription titles and the digital currency and the 2019 digital tokens order were modified in 2025.
- He revised the definition of digital token in the original 2019 order. It classifies digital assets in titles, which allows SCMs to regulate offers and trading.
| Date | Regulation / Law | Details |
| July 31, 2024 | Personal Data Protection Act | Data processing requirements for cryptographic companies |
| June 2024 | Application of the law (ops token) | Repression of the repression of unsuccessful cryptographic income |
| April 1, 2022 | Crypto travel rule in force | Regulated by SCM |
| April 26, 2021 | Transportation of travel rules in the national framework | Prevention of money laundering and terrorist financing in cryptocurrency |
| October 28, 2020 | SC’s revised guidelines for the crypto | Allows companies to collect funds via the issuance of tokens; Approval required by the IEO |
| January 15, 2019 | Capita Market and Services Order | Digital assets are classified as titles; Subject to securities law |
| 2018 | Training of the tax reform committee | He has not yet made changes to digital taxation. |
What does the Malaysian government say about cryptocurrency in 2025?
In 2025, the Malaysian government plans to introduce new regulations for cryptocurrencies and blockchain technology to line up on global trends. While the government creates new executives, the Securities Commission of Malaysia (SCM) focuses on:
- Regulate cryptocurrencies as titles
- Supervise trade and emission of digital assets
- Regulation of digital exchange and initial exchange platforms (IEO).
Crypto license in Malaysia
The crypto incident framework in Malaysia aims for technical adhesion and transparency in its internal structure. Cryptographic companies and platforms are subject to strict penalties, including costs, blocked access and a license revocation for non-compliance with cryptographic laws.
Types of cryptographic licenses in Malaysia:
- Transmitter: The main objective is the emission and tokens offers with a minimum of 500 thousand myr. Startups and fintech projects are applicable to this license.
- IEO operator: serves as an organization of initial public offers with 5 million myr. Platforms to attract investments are necessary to obtain this license.
- Digital Asset Custodian (DAC): The main goal is to serve as a storage of digital assets with 500,000 MyR costs. It applies to childcare services and fintech vaults.
List of approved cryptography exchanges in Malaysia 2025:
| Crypto exchange | Deposit fees |
| Luno | ABIVATE FREE RM 100 |
| Sink | Free |
| Tokenize | Free |
| MX global | Free |
| Hate | Free |
Cryptographic tax in Malaysia 2025
- Capital gains tax: The benefits of the purchase and sale of cryptocurrency as a personal investment are not taxable. Occasional investors are also eligible for this free tax regime.
- Tax franchise events: The occasional sale, the exchange, the sending of crypto between personal portfolios, gifts, crypto donation, air and the use of crypto for the sale of goods are events in tax franchise.
- Income tax: Crypto trade as a high frequency business is taxable as a regular income tax, which varies from 0 to 30% depending on the income tranches. Trading, mining and reception of crypto as compensation for services are taxable.
- Reports: For individuals, the deadline for declaration of income is April 30, while for business income, it is June 30 of each year.
Adoption of cryptography in Malaysia
- Cryptography penetration rate: The current rate of penetration of user in crypto in Malaysia should be 12.77%, which should drop to 13.03% by 2026. By next year, around 4,74 million Malaysians will use cryptocurrencies.
- Crypto income: In 2025, cryptocurrency market income should reach 484.1 million US dollars and increased at a rate of 3.74% per year. With growing users, the crypto income market will reach $ 502.2 million in 2026.
- Crypto Holdings: Malaysian government crypto assets are not yet publicly disclosed; It does not contain crypto reserves like the United States, but monitors cryptocurrencies and other digital assets in the financial system.
Conclusion
Malaysia is one of the countries that does not consider crypto as a legal aspect, but it has a legal regulatory framework to facilitate it. The country does not even have specific laws for cryptographic tax, and that is why Malaysia is recognized as one of the friendly countries in the world. Although it has no separate laws, the country maintains strict regulations to prevent fraud and risks in the cryptographic landscape.
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Faq
Yes, buying and possessing crypto is legal in Malaysia. However, it is not recognized as the legal, but rather as security under the 2019 prescription order (modified in 2025).
The Securities Commission Malaysia (SC) regulates crypto as titles, supervising the trade in digital assets, the issue, the IEO scholarships and platforms. They actively develop a complete framework.
Capital gains in personal cryptography investments are generally not taxed. However, the trade in cryptography as a frequent commercial activity, the exploitation or reception of the crypto, because the remuneration is subject to income tax (0-30%).
The Securities Commission Malaysia (SC) is the main government organization responsible for regulating digital asset operations in the country, including trade, emission and security. Bank Negara Malaysia (BNM) also monitors systemic risks.
