Malaysia

Malaysia has a clear regulatory framework for digital assets under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, regulated by the Securities Commission Malaysia (SC). The country supports innovation through initiatives like regulatory sandboxes and public consultations on tokenisation frameworks.

Overview

StatusLegal
Risk Score37/100 (Moderate Risk)
Regionsoutheast asia
CurrencyMYR

Tax Information

Capital Gains (Personal)0% (no capital gains tax on crypto for individuals)
Capital Gains (Corporate)24% corporate tax (may apply if crypto is trading stock)
VAT on CryptoNo

Licensing & Registration

RequiredYes
RegulatorSC / BNM
FrameworkCapital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019; supplemented by Guidelines on Recognized Markets (revised 20 May 2026) and Guidelines on Digital Assets (latest revision 19 August 2024)
Easemedium
Cost (USD)~USD 1,050,000 minimum paid-up capital for RMO-DAX (RM 5,000,000); ~USD 105,000 minimum for DAC (RM 500,000). Application/processing fees under Capital Markets and Services (Fees) Regulations 2025 (effective 1 January 2026).

Licensing is regulated by the Securities Commission Malaysia with specific licenses for digital asset service providers. The process is structured but requires compliance with AML and capital market regulations.

Enforcement Activity

Level: High

No detailed enforcement information available

AML / KYC

KYC RequiredYes
Travel RuleYes
FATF MemberYes
FATF Statuscompliant — not on grey list; October 2025 MER adopted; 24 Compliant + 16 Largely Compliant recommendations; roadmap issued for ML prosecution improvement
FATF BodyFATF/APG
Suspicious-Activity ReportingYes

DeFi, Stablecoins & NFTs

Status: regulated

DeFi activities fall under the regulatory scope of the Securities Commission Malaysia, requiring compliance with existing capital market laws and AML regulations.

Stablecoins

Status: developing

Malaysia has no specific stablecoin regulation framework as of June 2026; general digital asset and AML guidelines apply to any stablecoin activities on SC-licensed platforms. BNM is actively piloting MYR-denominated ringgit stablecoins and tokenised deposits under the DAIH, with full regulatory guidelines expected by end-2026. These pilots may serve as a pathway toward a wholesale CBDC.

NFTs

Status: unregulated

Mining

LegalYes
Electricity Cost$0.063/kWh
Renewable Energy20%
Infrastructuregood

Mining is legal with moderate electricity costs and a growing renewable energy share. Infrastructure supports data centers and mining operations, especially in urban areas.

Geopolitical Risk

Stabilitystable
SanctionsNo
Corruption Index47/100
Banking Accessopen

Risk Factors

Malaysia maintains a stable political environment with open banking access for crypto businesses. It is not under international sanctions and has moderate corruption levels.

Sources

Frequently Asked Questions

Is cryptocurrency legal in Malaysia?

Malaysia has a clear regulatory framework for digital assets under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, regulated by the Securities Commission Malaysia (SC). The country supports innovation through initiatives like regulatory sandboxes and public consultations on tokenisation frameworks.

What is the FATF status of Malaysia?

Malaysia is classified by FATF as: compliant — not on grey list; October 2025 MER adopted; 24 Compliant + 16 Largely Compliant recommendations; roadmap issued for ML prosecution improvement.

Are VASPs licensed in Malaysia?

Yes, licensing is required for VASPs.

What is the AML/KYC regime in Malaysia?

KYC is mandatory for crypto businesses. Travel rule threshold: all transactions (no de minimis).

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Last reviewed: 2026-06-01 · Data source: Soken Crypto Legal Map

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