Malaysia Launches “Ops Token” to Combat Crypto Tax Evasion

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Malaysian Authorities Crack Down on Crypto Tax Evasion with “Ops Token”

The Malaysian Inland Revenue Board (IRB), a federal agency overseeing tax collection, has launched a special operation codenamed “Ops Token” to combat tax revenue leakage stemming from cryptocurrency trading activities.

Local news outlet The Malaysian Reserve reported on the operation, which saw 38 personnel from the Royal Malaysia Police and CyberSecurity Malaysia (CSM) raid 10 locations within Klang Valley. These raids targeted companies suspected of failing to accurately report their crypto trading activities to the IRB.

The initiative aligns with the Malaysian government’s broader efforts to improve tax administration and reduce tax revenue leakage.

Evidence of Tax Evasion Unearthed

The authorities suspect that several limited liability partnerships and corporations were established specifically for crypto trading, with the intention of evading tax declaration. The IRB stated:

“Through Ops Token, cryptocurrency trading data stored on mobile devices and computers was seized. We successfully identified the value of digital assets being traded, which represents a significant source of undeclared tax revenue.”

The IRB plans to analyze the confiscated data to determine the total value of crypto assets traded and the corresponding profits generated. This will enable the agency to quantify the extent of tax revenue leakage.

IRB Chief Warns Crypto Traders

IRB CEO Datuk Abu Tariq Jamaluddin emphasized that individuals engaged in crypto trading within Malaysia are subject to the country’s income tax regulations. He urged all crypto traders to come forward and declare their crypto taxes at their nearest IRB office as soon as possible to avoid compliance actions.

The IRB expects “Ops Token” to improve Malaysia’s tax efficiency by reducing leakages and ultimately increasing tax revenue collection. This, in turn, will contribute to the sustainability of the country’s overall revenue generation.

Cryptocurrency Regulations in Malaysia

Cryptocurrency is legal in Malaysia, but it falls under the regulatory purview of the Securities Commission (SC), a statutory body responsible for overseeing the country’s capital markets. Tokens are classified as securities, subjecting them to Malaysia’s existing securities laws.

The central bank does not recognize crypto or tokens as legal tender or valid payment instruments within the country. However, crypto-focused businesses are still subject to income tax regulations established by the IRB.

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Author: Sb

This post was originally published on cryptonewsfarm.com

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