Malaysia's IRB Launches 'Ops Token'

The Malaysian federal agency Inland Revenue Board (IRB) has launched a special operation called 'Ops Token.' The operation aims to reduce crypto trading tax revenue evasion and further improve the country's tax administration.

Raids Conducted Across Klang Valley

Local media outlet The Malaysian Reserve reported that 38 personnel from the Royal Malaysia Police and CyberSecurity Malaysia (CSM) participated in the raids, which took place at ten different locations within Klang Valley. The main targets were companies suspected of not correctly reporting their crypto trading activities to the federal agency.

The IRB explained that several limited liability partnerships and corporate entities were explicitly formed for crypto trading. These entities allegedly avoided declaring their taxes.

"Through the operation, cryptocurrency trading data stored in mobile devices and computers were found, and we successfully identified the value of digital assets being traded, which caused a significant leakage of tax revenue," the IRB stated.

Analyzing Seized Data

The data obtained during 'Ops Token' will be meticulously analyzed. This analysis aims to determine the value of crypto assets traded and the profits generated. By doing so, the IRB hopes to identify the extent of the tax leakage that needs to be correctly declared.

IRB Chief Issues Warning

Datuk Abu Tariq Jamaluddin, the CEO of IRB, emphasized that individuals engaged in crypto trading in Malaysia are subject to the country's income tax rules. He warned crypto traders to properly declare their crypto taxes to nearby IRB offices as soon as possible to avoid compliance actions.

The IRB expects this operation to increase Malaysia's tax revenue by boosting tax efficiency and reducing leakages. The agency believes that 'Ops Token will contribute to the sustainability of the country's revenue collection.

Regulatory Landscape in Malaysia

In Malaysia, cryptocurrency is legal and regulated by the Securities Commission (SC). The SC has classified tokens as securities, subject to the country's securities laws.

However, the central bank does not regard crypto or tokens as payment instruments or legal tender. Additionally, crypto-focused businesses are subject to the country's income tax laws.