Cryptocurrency in Malaysia: regulation, licensed exchanges and taxes
In short. Malaysia treats digital assets as securities, which put them under the securities commission rather than the central bank. Five exchanges hold appointments, alongside three custodians and two offering operators. An individual pays no capital gains tax, so whether you owe anything turns on whether the revenue board sees an investor or a trader.
- CAPITAL GAINS
- 0%no such tax for individuals
- TRADING INCOME
- Taxableordinary income rates apply
- LICENSED EXCHANGES
- 5appointed by the securities commission
- CUSTODIANS
- 3plus two offering operators
- 2025 TURNOVER
- 17.14bn ringgitup 23% on 2024
- LEGAL TENDER
- Nothe ringgit keeps that role
Under securities law
The central bank settled the currency question on 2 January 2014: bitcoin is not legal tender in Malaysia and the bank does not regulate it. That left the market without a supervisor for five years.
The securities commission closed the gap on 15 January 2019 with an order prescribing digital currencies and digital tokens as securities. Guidelines on digital assets followed on 28 October 2020, covering token offerings, exchange offering platforms and custody. The effect was to move the whole market under securities law, where an exchange needs an appointment and a custodian needs one too.
Who holds what
Five exchanges held appointments in September 2026, among them Luno and MX Global, alongside three custodians and two offering operators. Trading on those venues reached 17.14 billion ringgit in 2025, up 23% on the year before.
Revised guidelines started on 20 May 2026. They tighten investor protection, sharpen the operational requirements and bring exchanges into the financial markets ombudsman scheme, which gives a customer an independent place to take a complaint the exchange will not settle.
What you pay
Malaysia has no capital gains tax for individuals and no crypto-specific law. The revenue board decides by looking at behaviour. Buy and hold as an investment, and a later sale is outside tax. Trade with enough regularity and volume that it reads as a business, and the profit becomes income under the ordinary rules.
Allowed
- Buy, hold and sell crypto
- Trade on an exchange the securities commission has appointed
- Take a complaint to the financial markets ombudsman
- Hold crypto with a licensed custodian
Restricted
- Use crypto as legal tender: the ringgit keeps that role
- Run an exchange, custody or offering platform without an appointment
- Offer digital assets to the public outside the securities framework
How the rules took shape
The central bank states that bitcoin is not legal tender and that it does not regulate it.
An order prescribes digital currencies and tokens as securities, putting them under the securities commission.
Guidelines on digital assets cover token offerings, exchange platforms and custody.
Revised guidelines tighten investor protection and add exchanges to the ombudsman scheme.
Five exchanges, three custodians and two offering operators hold appointments.
Common questions
Is crypto legal in Malaysia?
Yes. Digital assets count as securities under the securities commission. They are not legal tender, and the ringgit keeps that role.
Do I pay tax when I sell?
Malaysia has no capital gains tax for individuals, so an investment held and then sold is outside tax. If your trading amounts to a business, the profit meets income tax.
Which exchanges are licensed?
Five held appointments in September 2026, among them Luno and MX Global. The securities commission publishes the current list.
What if my exchange will not resolve a complaint?
Since 2026 appointed exchanges belong to the financial markets ombudsman scheme, which takes unresolved complaints independently of the platform.
How big is the regulated market?
Trading on appointed venues reached 17.14 billion ringgit in 2025, 23% more than in 2024.
Sources
Other countries
Updated 19.10.2026 · this is reference material, not investment or tax advice