A recent operation known as “Ops Token” was carried out by Malaysia’s Inland Revenue Board (IRB) to combat tax revenue leakage from cryptocurrency trading. The Malaysian Reserve, a local media outlet, reported that a team of 38 officials from the Royal Malaysia Police and CyberSecurity Malaysia (CSM) conducted raids at 10 different locations across Klang Valley.
The operation was aimed at companies that had failed to accurately report their cryptocurrency trading activities to the federal agency. This initiative is in line with the government’s efforts to minimize tax revenue losses and enhance the country’s tax administration.
Authorities claimed that several limited liability partnerships and corporate entities were established specifically for cryptocurrency trading, allegedly evading tax declarations. The IRB disclosed that data collected during the operation would be scrutinized to determine the value of crypto assets traded and profits earned, aiding in identifying undeclared tax amounts.
IRB’s CEO, Datuk Abu Tariq Jamaluddin, cautioned individuals involved in cryptocurrency trading to comply with Malaysia’s income tax regulations. He urged traders to declare their crypto taxes promptly at nearby IRB offices to avoid enforcement actions by the agency.
The IRB anticipates that the operation will enhance Malaysia’s tax revenue by boosting tax efficiency and reducing leakages, contributing to sustainable revenue collection for the country’s benefit.
In Malaysia, cryptocurrency is legal and regulated by the Securities Commission, the statutory body overseeing the country’s capital markets. Tokens are classified as securities, subjecting them to securities laws in Malaysia. While the central bank does not recognize crypto or tokens as legal tender, businesses focusing on cryptocurrency are required to adhere to the country’s income tax laws.
For more information about cryptocurrency regulations in Malaysia, please refer to the related content on Microsoft’s investment in Malaysia for cloud and AI expansion, as well as insights on the classification of ‘Bitcoin Layer 2s’ and its significance in the industry.