Is Cryptocurrency Legal in Malaysia?
In Malaysia, cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Dogecoin, Tether, Cardano, USDT, XRP, Monero and others, have been recognized as securities under the Malaysian law. The Securities Commission Malaysia (SC) has the authority to regulate and control all digital currency activities within the country. This means that while it is legal to own and trade cryptocurrencies, all activities must comply with specific rules and regulations set by the SC.
What are the Laws and Penalties for Cryptocurrency in Malaysia?
The main legislation governing cryptocurrencies in Malaysia is the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019. This order prescribes digital currencies and digital tokens as securities.
Any person operating unauthorized Initial Coin Offerings (ICOs) or digital asset exchanges faces legal penalties. Penalties can range from a 10-year imprisonment to a RM 10 million fine or both.
What are the Current Cryptocurrency Regulations in Malaysia?
The SC has issued guidelines on digital assets which outline the framework for ICOs and the trading of digital assets at digital asset exchanges in Malaysia. The guidelines aim to promote responsible innovation in the digital asset space, while managing emerging risks and safeguarding the interests of issuers and investors.
According to these guidelines, any person offering an ICO or operating a digital asset exchange must be registered with the SC. Furthermore, digital asset exchanges are required to carry out AML/CFT measures, ensure proper cybersecurity measures, and have clear procedures to manage conflicts of interest.
Which Cryptocurrencies are Most Used in Malaysia?
While the Malaysian market has shown interest in a variety of cryptocurrencies, the most commonly used include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Cardano (ADA)
- XRP (XRP)
- Monero (XMR)
Is Cryptocurrency Trading Legal in Malaysia?
Yes, cryptocurrency trading is legal in Malaysia, but it is regulated. Traders must comply with existing regulations and are encouraged to trade only with registered digital asset exchanges.
Is Cryptocurrency Gambling Legal in Malaysia?
Online gambling, including cryptocurrency gambling, is generally illegal in Malaysia. While the law doesn’t specifically mention cryptocurrencies, the general prohibition on online gambling would likely apply to cryptocurrency gambling as well.
What are Some Helpful Links, Government Laws and Resources on Cryptocurrency in Malaysia?
For further information and resources on cryptocurrency laws in Malaysia, you can visit the following links: