Malaysia

Regulated Partly Confirmed

Malaysia regulates digital-asset exchanges, custodians and token fundraising through the Securities Commission. Only approved operators and permitted assets should serve the local market.

Securities Commission Malaysia / Bank Negara Malaysia

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Allowed

Is crypto trading allowed?

Regulated

Is P2P trading allowed?

Regulated

Are crypto payments allowed?

Restricted

Is crypto legal tender?

Is mining allowed?

Allowed

Is staking allowed?

Regulated

Is DeFi participation allowed?

Restricted

Are stablecoins allowed or regulated?

Regulated

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Allowed	Is holding crypto allowed?
Crypto Trading	Regulated	Is crypto trading allowed?
P2P Trading	Regulated	Is P2P trading allowed?
Crypto Payments	Restricted	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Allowed	Is mining allowed?
Staking	Regulated	Is staking allowed?
DeFi	Restricted	Is DeFi participation allowed?
Stablecoins	Regulated	Are stablecoins allowed or regulated?
NFTs	Regulated	Are NFTs allowed or regulated?
Token Launches	Regulated	Are token launches allowed?
Crypto Advertising	Regulated	Is crypto advertising allowed?
Banking Access	Regulated	Do crypto businesses have banking access?

Regulation Overview

Digital currencies and digital tokens prescribed as securities fall under Malaysia's capital-markets framework. The Securities Commission registers digital-asset exchanges as Recognized Market Operators, regulates custodians and controls fundraising through approved channels. Bank Negara Malaysia oversees payment, banking and AML matters. Crypto is not legal tender, and public users are directed to the SC's current lists of regulated players.

Tax Information

Malaysia generally applies ordinary tax principles: gains that are revenue in nature or arise from a trade/business are taxable, while genuinely capital gains for an individual may fall outside income tax. Facts and frequency matter.

Individual Tax Treatment

An occasional long-term investor may have capital treatment, but frequent, organised or profit-making activity can be taxable business income. Keep complete ringgit valuation and transaction records.

Business Tax Treatment

Digital-asset businesses include revenue and gains in taxable income and assess service tax, withholding, payroll and transfer-pricing rules as applicable.

Inland Revenue Board of Malaysia

Business & Licensing

A DAX must be registered as an RMO with the SC. Digital-asset custodians and regulated fundraising operators require the applicable SC approval and must comply with capital and safeguarding rules.

AML / KYC Requirements

Regulated players must implement capital-market AML/CFT controls, KYC, beneficial-owner checks, transaction monitoring, sanctions screening, recordkeeping and suspicious-reporting.

Primary Regulator

Securities Commission Malaysia / Bank Negara Malaysia

sc.com.my

Crypto Laws & Regulations in Malaysia

Othereffective

Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019

Effective: January 15, 2019

Malaysia's Capital Markets and Services Order 2019 prescribes qualifying digital currencies and digital tokens as securities for capital-markets law, providing the legal basis for SC regulation of digital-asset exchanges (DAX) and token fundraising (IEO). The 2025 amendment updated certain provisions and must be read together with SC guidelines.

LicensingToken IssuanceExchangesSecurities

Official Source

Othereffective