Bitcoin (BTC) is the first cryptocurrency that operates without the need for a central authority. It enables users to engage in international buying and trading without any restrictions. However, the methods for acquiring Bitcoin may vary depending on the government’s stance towards digital currencies in different countries.
Fortunately, in Malaysia, it is legal to buy Bitcoin. The Malaysian government allows regulated exchanges and Bitcoin ATMs to operate in the country. If you’re interested in purchasing Bitcoin with Malaysian ringgits, this article will guide you through the process step by step.
First, let’s take a look at the legal status of Bitcoin in Malaysia. As of April 2024, it is legal to buy Bitcoin in the country. However, Bitcoin is not considered legal tender. While holding and buying Bitcoin is legal, local businesses are not allowed to accept cryptocurrency as a payment method unless they explicitly choose to do so.
To ensure a safe and regulated buying experience, it is important to buy from an exchange that is supported in Malaysia. Regulated exchanges adhere to the cryptocurrency laws in Malaysia, including Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, which help minimize the risk of theft and scams.
The Malaysian government classifies Bitcoin as a security, which means that Bitcoin transactions are not subject to capital gains tax. However, if frequent traders generate significant profits from their trades, they may be subject to income tax if it becomes their primary source of income.
Now, let’s explore the different ways to safely buy Bitcoin in Malaysia. Before getting started, you’ll need a crypto wallet. Crypto wallets can come in various forms, such as exchange wallets, mobile wallets, or hardware wallets.
Exchange wallets are popular among everyday traders as they are connected to the internet and provide easy access to assets. However, they are not entirely tamper-proof and can be vulnerable to theft.
Mobile wallets, on the other hand, are tied to a user’s mobile device and are considered safer than exchange wallets. Losing a mobile device can result in losing access to the crypto wallet, so it’s important to take precautions and avoid using open networks.
For long-term holders, hardware wallets are the safest option. They are offline and have top-tier security algorithms, keeping them safe from hackers and other threats.
Once you have a crypto wallet, you can buy and store Bitcoin through various methods, such as using a fiat-to-crypto exchange or a Bitcoin ATM.
Malaysian fiat-to-crypto exchanges allow users to create an account and buy Bitcoin using their local bank or by sending crypto from another wallet or exchange. Some popular Bitcoin brokers in Malaysia include Binance and Luno.
Bitcoin ATMs are another convenient option for buying Bitcoin in Malaysia. These ATMs can usually be found in local supermarkets or gas stations. Users can deposit cash into the machine and receive a QR code to transfer the funds to their Bitcoin wallet. However, Bitcoin ATMs often charge higher fees compared to other methods.
Alternatively, peer-to-peer trading is an original method of buying Bitcoin that involves direct transactions between individuals. Platforms like Paxful and Reminato facilitate peer-to-peer trading in Malaysia. Users can fund their wallets through various methods and then create or browse existing offers to buy Bitcoin.
The future of cryptocurrencies in Malaysia remains uncertain. While there is growing acceptance, the country’s central bank, Bank Negara Malaysia, has not declared cryptocurrencies as legal tender and has expressed concerns about potential risks. However, the Securities Commission Malaysia regulates cryptocurrency exchanges, indicating some degree of governmental acknowledgment.
The government is cautious about volatility and misuse but also recognizes the potential advantages of cryptocurrencies. The future of cryptocurrency in Malaysia will be shaped by changes in the regulatory environment and its impact on traditional finance and innovation in a regulated setting.