Malaysia has launched a rigorous crackdown on cryptocurrency tax evasion through a special operation named “Ops Token.”
The Inland Revenue Board (IRB) aims to curb significant tax revenue losses attributed to unreported crypto trading activities.
In a major enforcement effort, 38 personnel from the Royal Malaysia Police and CyberSecurity Malaysia (CSM) executed coordinated raids on 10 locations in Klang Valley.
These raids targeted companies suspected of failing to declare their crypto trading profits.
The authorities have uncovered evidence suggesting that several corporate entities and limited liability partnerships were engaged in undeclared crypto trading.
IRB officials reported that they had seized mobile devices and computers containing detailed cryptocurrency trading data.
This data will be scrutinized to assess the magnitude of the tax evasion.
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.
