The Malaysian government is ramping up its fight against cryptocurrency tax evasion with a new operation named ‘Ops Token’. The Inland Revenue Board (IRB) has executed raids at various locations, focusing on companies allegedly failing to declare their cryptocurrency transactions.
This effort mirrors India’s strategy for regulating the cryptocurrency market, aiming to foster transparency and regulate transactions that are typically anonymous and vulnerable to illegal activities. The IRB, in collaboration with the Royal Malaysia Police and CyberSecurity Malaysia, is targeting tax evasion. A specialized team of 38 security officers conducted raids in ten locations throughout the Klang Valley.
In Malaysia, cryptocurrencies are treated as securities. They are not recognized as legal tender, but trading them is allowed. All cryptocurrency businesses must comply with the Malaysian tax laws.
This initiative aligns with the growth of the Malaysian cryptocurrency market, which is expected to generate $306.6 million by the end of 2024, with roughly three million Malaysians actively participating.
Earlier this year, Prime Minister Datuk Seri Anwar Ibrahim directed authorities to intensify efforts against tax evasion following reports that Malaysia had lost RM 6.34 billion due to such practices.
Companies involved in cryptocurrencies are now undergoing audits, and those found non-compliant could face severe penalties. In Malaysia, tax evasion can result in a fine up to RM 20,000 or a six-month prison term.
These actions build on previous steps taken by the Malaysian government to address illegal crypto mining operations, which were reportedly using stolen electricity.
