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Synopsis: The Malaysian government has launched 'Ops Token,' a comprehensive crackdown on crypto tax evasion, reflecting India's approach to regulating the crypto space. This operation aims to bring transparency and control to crypto transactions, which are often anonymous and susceptible to illegal activities. The Inland Revenue Board (IRB), in collaboration with the Royal Malaysia Police and CyberSecurity Malaysia (CSM), has conducted raids in multiple locations to identify firms evading taxes. With Malaysia's crypto market projected to reach $306.6 million by 2024, the government is determined to curb tax evasion and enforce penalties on defaulting companies.
In a bid to combat tax evasion within the burgeoning cryptocurrency sector, the Malaysian government has initiated a significant crackdown dubbed 'Ops Token.' This move is akin to India's regulatory measures aimed at ensuring transparency and control over crypto transactions, which are often shrouded in anonymity and prone to illegal activities.
The Inland Revenue Board (IRB) of Malaysia, working in conjunction with the Royal Malaysia Police and CyberSecurity Malaysia (CSM), has been at the forefront of this operation. A team of 38 security personnel has conducted raids at ten locations across the Klang Valley, targeting companies suspected of failing to report their crypto-related activities.
In Malaysia, cryptocurrencies are classified as securities. While not recognized as legal tender, the trading of cryptocurrencies is allowed, and businesses operating in this space are subject to the country's tax regulations. The government’s intensified focus on this sector comes at a time when the Malaysian cryptocurrency market is projected to generate $306.6 million in revenue by the end of 2024, with around three million residents actively participating in crypto trading.
The crackdown aligns with broader efforts by the Malaysian government to eliminate tax evasion across various sectors. Earlier this year, Prime Minister Datuk Seri Anwar Ibrahim directed authorities to address tax evasion more aggressively, following reports that the country lost RM 6.34 billion to tax evasion.
Consequently, companies engaged in cryptocurrency activities are now facing stringent audits. Those found guilty of tax evasion will face severe consequences, including fines of up to RM 20,000 and potential imprisonment for up to six months.
This latest initiative follows previous governmental measures to curb illegal crypto mining operations, which were criticized for draining significant amounts of electricity.
Malaysia’s decisive action in the form of 'Ops Token' underscores its commitment to regulating the rapidly growing crypto industry, ensuring compliance with tax laws, and maintaining financial integrity within the sector.
