Crypto Regulations in Malaysia 2025

In Malaysia, buying and owning crypto is legal, but it is not considered legal tender by the federal government. The country does not recognize cryptocurrency as a payment instrument, but rather as a security under the Prescription Order 2019. 

Currently, the Securities Commission Malaysia (SC) is actively developing a framework for digital assets, including public consultation on tokenized capital market products. 

Time of Major Crypto Regulations in Malaysia 

July 2025 – Bank Negara Malaysia Working Papers (WP3/2025)

• Bank Negara Malaysia (BNM) is planning to innovate the traditional banking system by allowing Bitcoin and XRP as a payment alternative. 

• The bank is implementing consumer protection, regulatory clarity, a robust technological framework, and a system to address price volatility. 

June 30, 2025 – Public Consultation Paper No 3/2025 (“CP 3/25”)

• The Securities Commission (SC) in Malaysia issued a consultation paper seeking public feedback on digital asset exchange regulation. The consultation will be open till August 11, 2025. 

• It also proposed to allow certain tokens to be listed on regulated DAX (digital asset exchange) platforms without prior approval from the SC. 

January 9, 2025– Order 2025 [P.U. (A) 6/2025] Capital Market and Services 

• The Prescription Securities and Digital Currency and Digital Token Order 2019 was amended in 2025. 

• It revised the definition of digital token within the original Order 2019. It classifies digital assets as securities, empowering SCM to regulate offerings and trading. 

What is the Malaysian Government Saying About Cryptocurrency in 2025?

In 2025, the Malaysian government is considering introducing new regulations for cryptocurrencies and blockchain technology to align with global trends. While the government is creating new frameworks, the Securities Commission of Malaysia (SCM) is focusing on:

• Regulating cryptocurrencies as securities

• Overseeing digital assets trade and issuance 

• Regulating digital assets exchange and Initial Exchange Offering (IEO)platforms.

Additionally, the Bank Negara Malaysia (BNM) stated in July 2025, “Private tokens such as Bitcoin or XRP may be widely used as a means of payment outside the banking system in the future, replacing CIC or bank deposits.”

Crypto License in Malaysia 

The crypto incident framework in Malaysia aims for technical adherence and transparency in its internal structure. The crypto businesses and platforms are subject to strict penalties, including fees, blocked access, and license revocation for non-compliance with crypto laws. 

Types of crypto licenses in Malaysia:  

1. Issuer: The Main purpose is the issuance and offerings of tokens with a minimum of 500 thousand MYR. Startups and fintech projects are applicable for this license. 

2. IEO Operator: Serves as an organization of initial public offerings with 5 million MYR. Platforms for attracting investments are required to obtain this license. 

3. Digital asset custodian (DAC): The Primary purpose is serving as a storage of digital assets with 500 thousand MYR fees. It applies to custodian services and fintech vaults. 

List of licensed crypto exchanges in Malaysia 2025: 

Crypto Tax in Malaysia 2025 

• Capital gains tax: Profits from buying and selling cryptocurrency as a personal investment are not taxable. Occasional investors are also eligible for this tax-free regime. 

• Tax-free events: Occasional selling, swapping, sending crypto between personal wallets, gifting, donating crypto, airdrops, and using crypto for selling goods are tax-free events. 

• Income tax: Crypto trading as a business with high frequency is taxable as regular income tax, which ranges from 0-30% depending on income brackets. Trading, mining, and receiving crypto as compensation for services are taxable. 

• Reports: For individuals, the tax return deadline is April 30, while for business income, it is June 30 each year. 

Crypto Adoption in Malaysia

• Crypto Penetration Rate: The current crypto user penetration rate in Malaysia is projected to be 12.77%, which is expected to increase to 13.03% by 2026. By next year, approximately 4,74 million Malaysians will use cryptocurrencies. 

• Crypto revenue: In 2025, the revenue of the cryptocurrency market is expected to reach US$ 484.1 million and is growing at a rate of 3.74% annually. With growing users, the revenue market of crypto will reach US$ 502.2 million in 2026. 

• Crypto holdings: Malaysian government’s crypto holdings are not publicly disclosed yet; it does not hold crypto reserves like the US, but monitors cryptocurrencies and other digital assets within the financial system. 

Conclusion 

Malaysia is one of the countries that does not consider crypto as legal tender, but it has a legal regulatory framework to facilitate it. The country does not even have any specific laws for crypto tax, and this is why Malaysia is recognized as one of the crypto-friendly countries in the world. Despite not having separate laws, the country maintains strict regulations to prevent fraud and risk in the crypto landscape.

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