Authorities in Malaysia are reportedly cracking down on crypto tax evaders. As part of a special investigation codenamed ‘Ops Token’, officials from Malaysia’s federal agency Inland Revenue Board (IRB) reportedly raided multiple locations identifying companies that were not reporting their crypto-related engagements. Through these taxes, the Malaysian government, much like India, is trying to keep track of crypto-related financial transactions that are otherwise mostly anonymous and could be used for illegal activities.
The RBI is said to have joined forces with the Royal Malaysian Police as well as CyberSecurity Malaysia (CSM) to identify tax evaders. A team of 38 security personnel were part of a team that conducted raids at ten locations in the Klang Valley, according to a report by the Malaysian Reserve over the weekend.
In Malaysia, cryptocurrencies are said to be categorized as securities. Although cryptocurrencies are not considered payment options, their trading is allowed in Malaysia. However, crypto-related companies operating in the country fall under the national tax regime.
According to Statista, Malaysia’s cryptocurrency market is predicted to reach an estimated $306.6 million (roughly 2556 million rupiah) in revenue by the end of 2024. Statista also estimates that three million Malaysians are currently active in the crypto space.
The authorities there are trying to crack down on cases of tax evasion throughout the country. In March, Malaysian Prime Minister Datuk Seri Anwar Ibrahim reportedly ordered authorities to crack down on tax evaders.
His instructions to conduct audits of crypto companies and take action against defaulters came after Malaysia reportedly lost RM6.34 billion or $1.3 billion (roughly 11,222 million rupiah) to tax evasion.
In Malaysia, the penalty for tax evasion can be a fine of up to RM20,000 or $4,237.74 (approximately 3.53 lakh rupees), as well as up to six months in prison.
Previously, Malaysia defended crypto miners to prevent theft of electricity for mining operations.
