- Malaysia initiates ‘Ops Token’ to combat crypto tax evasion.
- Raids conducted across multiple locations targeting firms not reporting crypto activities.
- Crypto businesses in Malaysia are subject to the nation’s tax laws.
The Malaysian government has started a crackdown on crypto tax evasion with a special operation called ‘Ops Token’. Officials from the Inland Revenue Board (IRB) have raided several locations, focusing on firms suspected of not reporting their crypto-related activities. This effort mirrors India’s approach to regulating the crypto space and aims to increase transparency and control over often anonymous crypto transactions.
Collaborating with the Royal Malaysia Police and CyberSecurity Malaysia (CSM), the IRB deployed 38 security personnel to conduct raids in ten locations in the Klang Valley. Cryptocurrencies in Malaysia are classified as securities, and while they are not legal tender, their trading is allowed. Crypto businesses must adhere to the nation’s tax laws.
With Malaysia’s cryptocurrency market expected to reach $306.6 million in revenue by the end of 2024, and with an estimated three million residents active in crypto, the government is keen to curb tax evasion. Companies found evading taxes face audits, and those in default will face penalties, including fines up to RM 20,000 and up to six months in prison.
This crackdown is part of broader efforts to reduce tax evasion in all sectors, following Prime Minister Datuk Seri Anwar Ibrahim’s directive earlier this year. Previously, the government also targeted illegal crypto mining operations.
