Malaysia embarks on raids to recover lost tax revenue from crypto trading

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A crackdown has been launched in Malaysia against cryptocurrency tax evasion.

The move, a special operation named “Ops Token,” was introduced by the Inland Revenue Board (IRB) to curb significant tax revenue losses attributed to unreported crypto trading activities.

Coordinating the operation are 38 personnel from the Royal Malaysia Police and CyberSecurity Malaysia (CSM).

Raids were carried out in 10 locations in Klang Valley, targetting companies suspected of failing to declare their crypto trading profits.

This comed as the authorities discovered that several corporate entities and limited liability partnerships failed to declare their crypto trading transactions.

IRB officials reported that they had seized mobile devices and computers containing detailed cryptocurrency trading data.

IRB CEO Datuk Abu Tariq Jamaluddin issued a stark warning to crypto traders, emphasizing their obligation to comply with Malaysia’s tax laws.

He urged those involved in crypto trading to promptly declare their earnings to the IRB, highlighting that non-compliance will lead to stringent enforcement actions.

The IRB expects that “Ops Token” will significantly boost Malaysia’s tax revenue by improving compliance and reducing tax evasion.

This initiative is part of a broader strategy to enhance the country’s tax administration and ensure sustainable revenue collection.

In Malaysia, cryptocurrencies are regulated by the Securities Commission, which treats them as securities.

While not considered legal tender by the central bank, crypto-related businesses must adhere to the country’s income tax laws, reinforcing the government’s stance on transparent and compliant crypto trading activities.