Malaysia has taken a progressive yet cautious approach to regulating cryptocurrency in 2025. While crypto is legal to buy and own, it is not recognized as legal tender, and instead classified as a security under Malaysia’s Capital Markets framework.
Legal Status: Crypto Is a Security, Not Currency
Under the Capital Market and Services (Prescription of Securities) Order 2019, and its 2025 amendment [P.U. (A) 6/2025], digital tokens are classified as securities, placing them under the oversight of the Securities Commission Malaysia (SC).
The SC is actively developing a comprehensive framework for digital assets, including public consultation for tokenized capital market products.
Timeline of Major Crypto Regulations in Malaysia
| Date | Regulation | Summary |
|---|---|---|
| Jan 9, 2025 | Capital Market Order Amended | Updated digital token definitions and regulatory reach |
| July 31, 2024 | Personal Data Protection Act | Data management rules for crypto businesses |
| June 2024 | Tax Enforcement (Ops Token) | Targeted undeclared crypto income |
| April 2022 | Crypto Travel Rule | AML compliance under SC oversight |
| Oct 2020 | Token Issuance Guidelines | Approval required for fundraising via tokens |
| Jan 2019 | Digital Assets as Securities | First legal recognition of crypto under securities law |
Crypto Licensing in Malaysia: Structured and Stringent
Malaysia offers three main crypto licenses:
- Issuer: For token offerings; requires a minimum capital of 500,000 MYR
- IEO Operator: For managing public token offerings; capital requirement is 5 million MYR
- Digital Asset Custodian (DAC): For crypto storage services; 500,000 MYR capital minimum
Non-compliant businesses face license revocation, fines, and platform bans.
Licensed exchanges in 2025 include Luno, Sinegy, Tokenize, MX Global, and Hata, all offering free deposit fees for local users.
Crypto Taxation in Malaysia 2025: Still Crypto-Friendly
- Capital Gains Tax: Not applicable to personal investments or occasional crypto trading
- Tax-Free Events: Gifting, airdrops, wallet transfers, and occasional selling remain non-taxable
- Income Tax: Applicable only for frequent traders, miners, or those receiving crypto for services (0–30% based on income)
Tax deadlines: April 30 (individuals), June 30 (businesses).
Crypto Adoption: Rising Popularity and Market Value
- User Penetration (2025): 12.77%, with 4.74 million users expected by 2026
- Market Revenue: Reaching US$484.1 million in 2025, projected to grow to US$502.2 million by 2026
- Government Holdings: Not publicly disclosed; Malaysia does not hold crypto as reserves but monitors the digital economy closely
Wind_up: Malaysia Embraces Regulation While Encouraging Growth
Malaysia does not consider crypto legal tender, but offers one of Asia’s clearest regulatory paths for digital assets.
With strong licensing structures, tax clarity, and ongoing development by the SC, Malaysia positions itself as a crypto-friendly nation with safeguards for innovation and investor protection.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.