In Malaysia, Is Cryptocurrency Legal?
It is a question that many people ask themselves these days. In this post, we will answer the question and discuss what cryptocurrency is and its legality in Malaysia.
We will also talk about how to invest in cryptocurrencies and whether they are safe or not in this blog post.
Is Cryptocurrency Legal in Malaysia?
Yes, cryptocurrency is legal in Malaysia.
The government has issued warnings about the risk of investing in cryptocurrency, but it is legal to buy and sell Bitcoin on Malaysian exchanges.
Cryptocurrency is a digital or virtual currency that uses cryptography for security.
All cryptocurrency transactions are tracked and recorded on the blockchain, which makes them secure.
Cryptocurrencies have no physical form but they can be used to purchase goods and services just like normal money.
Malaysia has not banned cryptocurrencies completely in any way, however, there are restrictions in the country which make it difficult to use them.
Is Cryptocurrency Trading Regulated in Malaysia?
Cryptocurrency trading in Malaysia is not regulated by the government, which means that all cryptocurrency transactions are treated as barter trades instead of currency exchanges.
This makes it difficult for users to withdraw their profits from Malaysian exchanges because banks do not recognize cryptocurrencies when they convert them into Ringgit.
However, since cryptocurrencies are not banned in Malaysia, users can trade cryptocurrencies through offshore exchanges that do not have any legal restrictions.
With that been said, let look at some good cryptocurrency with good potentials worth investing in…..
Top 20 Cryptocurrencies to Invest in Malaysia
There are a lot of coins out there, and it’s difficult to know where to begin. To get you started, here is a list of 20 top cryptocurrencies that everyone should invest in:
- Ethereum (ETH)
- Bitcoin (BTC)
- XRP (XRP)
- Stellar (XLM)
- Cardano (ADA)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Neo (NEO)
- Celsius (CEL)
- Nano (NANO)
- Chainlink (LINK)
- Monero (XMR)
- Tether (USDT)
- Litecoin (LTC)
- Binance Coin (BNB)
- NEM (XEM)
- TRON (TRX)
- Dash (DASH)
- Zcash (ZEC)
- Bitcoin Gold (BTG)
If you are looking for a cryptocurrency investment opportunity, there is no time like the present.
The crypto market continues to rise and provides an excellent chance to make money. We have compiled this list of cryptocurrencies that can provide significant returns on your investment if they continue their upward trend.
Remember, just because one currency has had a good run doesn’t mean it will keep going up forever so do your research before making any investments.
However, if you are looking for a way to buy or invest in the following cryptocurrencies mentioned above, you can buy them in the following crypto exchange:
- Luno
- Tokenize
- Binance
- Kraken
- Houbi
Do Malaysian banks accept Bitcoin or any type of Crypto?
No, the Malaysian banks have not yet accepted bitcoin or any type of cryptocurrency.
The Malaysian banks are not yet open to accepting cryptocurrencies, however.
This is because the country’s central bank has not yet given any sort of approval or regulation on cryptocurrency and is not considered as a legal tender.
In Malaysia, cryptocurrency is not yet an approved mode of payment and transaction by Bank Negara Malaysia (BNM).
However, it can be traded as a commodity in the current market.
But, this doesn’t mean that you cannot use Bitcoin or other cryptocurrencies in Malaysia.
There are many Malaysians who have been trading cryptocurrencies online to send money back home or pay for goods and services online.
You can also buy bitcoins from a Malaysian cryptocurrency exchange if you want to own some bitcoin as an investment.
How can I buy Bitcoin legally in Malaysia?
You can buy Bitcoin through cryptocurrency exchanges in Malaysia.
For Malaysians, there are 3 main ways you can buy Bitcoin:
- Through regulated exchanges by The Securities Commission Malaysia (SC). The only 3 regulated exchanges are Luno, SINEGY, and Tokenize
- Through unregulated exchanges. These include Binance, Kraken, Houbi, and FTX. Do note, however, that some of these exchanges are listed in SC’s Investor Alert List.
- Through P2P platforms like Binance, Paxful, LocalBitcoins, and Remitano.
Can you buy crypto with a credit card in Malaysia?
Yes, you can buy crypto with a credit card in Malaysia through Crypto exchanges like Coinhako that are regulated by the Malaysia Security commission.
Malaysia currently has more than 3 million people trading Bitcoin and Ethereum, and the number of cryptocurrency enthusiasts is rising by the day.
At last count, there were 43 Bitcoin ATMs and 22 Ethereum ATMs in Kuala Lumpur alone, which is just one city in Malaysia!
This means that you will also be able to purchase crypto with a credit card if you live anywhere else in Malaysia.
Is Coinbase legal in Malaysia?
Yes, Coinbase is legal in Malaysia.
The Central Bank of Malaysia recently issued a circular warning about the risks of cryptocurrencies which does not mention any one company by name.
Due to this ambiguity, it appears that Coinbase can be used without any restrictions in Malaysia.
Currently, the Malaysian government has not outlined cryptocurrency regulations but has instead focused on preventing money laundering and terrorist financing through cryptocurrencies.
Is Binance legal in Malaysia
Yes, Binance is legal in Malaysia.
But does not support traders from Malaysia. It’s possible that the primary motivation for this is problems with KYC compliance and also Binance constantly evaluates its product and service offerings to remain compliant with local regulations, they have ceased the following products and offerings in Malaysia:
- MYR trading pairs
- MYR payment options
- P2P merchant applications
However, this is due to the Malaysian order to Binance to halt its operation for operating a digital asset.
How can I sell my Bitcoin in Malaysia in 2021?
As of January 2021, there are unfortunately no Bitcoin ATMs in Malaysia. However, any exchange with a Malaysian ringgit (MYR) trading pair will allow you to sell your Bitcoin for fiat currency.
Luno has MYR trading pairs for many popular coins where you can sell your Bitcoin.
Can I convert Bitcoin to cash in Malaysia?
Yes, you can convert your Bitcoin to cash in Malaysia.
LocalBitcoins is one option.
Here, you can buy and sell Bitcoin for a wide range of payment methods, from gift cards to bank transfers.
LocalBitcoin’s P2P system allows both parties to be protected by an escrow service while they trade securely with each other.
This does introduce some risk because users are not screened beforehand; however, the platform tries its best to mitigate this issue by requiring all personal information before trading begins so that transactions go smoothly if issues do arise in the future.
What is the future of cryptocurrencies in Malaysia?
Let’s clear things up, cryptocurrencies are not legal tender in Malaysia.
However, there is a lot of cryptocurrency transactions happening among Malaysians every day! How?
By using the trustless and decentralized peer-to-peer (P2P) system where you never have to worry about governments taking away what belongs to you.
The restriction here, especially for Malaysia, is that it can’t be used offline or within the country itself when buying/selling products/services with crypto assets.
Cryptocurrencies are viewed rightly or wrongly as a threat to banking and financial centers where trade, securitization, and asset management activity are transacted via the leading exchange currencies.
Is Bitcoin or Cryptocurrency taxable in Malaysia?
No.
Currently, cryptocurrency taxation is not clear-cut in Malaysia.
There are no specific provisions for digital currency under the Income Tax Act 1967 (the principal legislation when it comes to tax).
The Inland Revenue Board of Malaysia has yet to issue definitive guidelines on how cryptocurrencies should be taxed or if Malaysian individuals have to pay taxes for profits obtained through trading Bitcoin and other cryptocurrencies.
Is Cryptocurrency banned in Malaysia?
No, Cryptocurrency is not banned in Malaysia but it’s not recognized as a legal tender or currency.
However, the Malaysian Monetary Authority (MAS) issued a statement on December 4th, 2017, cautioning members of the public against investing in cryptocurrencies due to many risks such as fraud and an unacceptable level of transparency.
The MAS warned people to only invest what they can afford to lose and not share any personal banking information over emails or other unsecured channels because “virtual currencies reside in an unregulated cyber environment that poses immense threats.”
The lack of a regulatory framework presents many dangers for cryptocurrency investors and is one reason it currently seems like a high-risk gamble.
Is trading in cryptocurrency legal in Malaysia?
Trading in cryptocurrency is legal in Malaysia.
Treating trading in cryptocurrency as a commodity would be difficult considering that it does not have any tangible value or basis to be traded on, but it does have an intangible value that I’ll address below.
The Malaysian government has yet to come up with any policies pertaining to the digital currency market since its inception, which leaves traders at their own risk when purchasing and investing in crypto assets.
The lack of awareness by Malaysian policymakers could be because they are yet unsure of what kind of impact cryptocurrencies will have on the economy; other countries who already adopted this technology like Japan, Singapore, and Australia seem to show little signs of backtracking.
Is investing in cryptocurrency legal in Malaysia?
Yes, Investing in cryptocurrency is legal in Malaysia.
Cryptocurrencies can change the financial world and very quickly.
It’s hard for regulators to predict what will happen next. Whether you invest or not, it’s worth following and understanding cryptocurrencies and blockchain technology in order to be ready for what might happen next.
Is mining cryptocurrency legal in Malaysia?
Mining cryptocurrency is legal in Malaysia.
However, the specifics of what constitutes “mining” and how to report money made from mining will differ depending on the country mining in and could be subject to change at any time.
Some say that the government will soon take strict measures to crack down on people who mine cryptocurrencies because it’s rapidly gaining popularity, which can lead to black markets eventually developing based on its trading internationally.
This would endanger the stability of our economy by transferring large amounts of capital out of Malaysia where prices are higher than they are here.
Nevertheless, there are no indications yet that these changes will happen in Malaysia any time soon since many politicians see potential benefits when looking for substantial tax revenues when crypto trading becomes even more.
Is buying and selling cryptocurrency legal in Malaysia?
Yes, buying and selling cryptocurrency is legal in Malaysia.
Under Malaysian law, cryptocurrencies are not considered either securities or Financial instruments under the Securities Commission Act 1993.
Therefore trading in cryptocurrencies will not be governed by the provisions of that Act, rather they will fall under the purview of relevant national legislation that implements International Monetary Fund (IMF) guidelines on domestic money laundering and terrorism financing.
Malaysia recognizes virtual currencies as vital instruments for modern digital commerce given their ability to cross borders.
Furthermore, blockchain offers many possibilities to drive economic growth and create new opportunities via innovation.
Thus Malaysia has taken a proactive stance in creating an environment with recognition at both policy and implementation levels with regards to cryptocurrency trade.
Is Cryptocurrency Legal in Malaysia – Final Thoughts
As Malaysia moves into the future, it will be interesting to see how cryptocurrency is integrated with society and what new developments arise.
Cryptocurrency has been a controversial topic among many countries as of late; however, its popularity continues to grow due in part to global economic instability and increasing distrust of traditional currencies like the US dollar or Euro.
The question about whether or not bitcoin is legal in Malaysia may seem simple but there are more factors than most people realize that go into determining legality.
You can buy Bitcoin through cryptocurrency exchanges in Malaysia.
Through regulated exchanges by The Securities Commission Malaysia (SC). The only 3 regulated exchanges are Luno, SINEGY, and Tokenize.
However, make sure you invest what you can lose in cryptocurrency.
I hope this blog post was helpful for you!
