With 3 million Malaysians under the younger demographic actively using cryptocurrencies, it’s apparent that it’s an increasingly popular investment option here. How do you start getting involved in buying cryptocurrency in Malaysia, though?
This article will walk you through everything you need to know about the process of buying cryptocurrency in Malaysia, including licensed cryptocurrency platforms, legal aspects, and best practices for safe trading.
Last updated: 5 February 2025
What is cryptocurrency?
Cryptocurrency is a digital payment system that operates without the need for banks to verify transactions. It uses a peer-to-peer network, allowing people anywhere in the world to send and receive payments seamlessly. Unlike physical money, cryptocurrencies exist purely as digital records in an online database that tracks transactions. Transfers are logged on a public ledger, and funds are securely stored in digital wallets.
Are cryptocurrencies legal tender in Malaysia?
No, cryptocurrencies are not recognised as legal tender here. Based on the Central Bank of Malaysia Act, the ringgit is Malaysia’s only legal tender, removing cryptocurrencies from this status.
That said, cryptocurrencies fall under the Capital Markets and Services Order, meaning they have a defined legal status within the country’s financial regulatory framework.
In a nutshell, while cryptocurrencies aren’t legal tender, you can still legally trade in cryptocurrencies. There are no laws in place stopping the exchange of services or assets for cryptocurrencies in Malaysia.
How to Invest in Cryptocurrencies Legally in Malaysia?
These SC-approved cryptocurrency exchanges 2025 are allowed to operate here:
List of Licensed Cryptourrency Exchanges in Malaysia (2025)
| Cryptocurrency Exchange | Deposit fee | Maker Fees | Taker Fees |
|---|---|---|---|
| Luno | Free above RM100 | 0%-0.35% | 0.13%-0.6% |
| SINEGY | Free | 0.25% | 0.5% |
| Tokenize | Free | 0.1% | 0.6% |
| MX Global | Free | 0% | 0.5% |
| Hata | Free | 0% | 0.1% to 0.25% |
| Torum (Pending official launch) | Not available | Not available | Not available |
Source: Respective websites, Fintech News
Step-by-Step Guide to Purchasing Crypto in Malaysia
All it takes is six steps to kick start your cryptocurrency journey and take part in the cryptocurrency exchanges Malaysia has:
- Pick a licensed cryptocurrency exchange (as listed above)
- Sign up on your chosen platform and complete the verification process
- Deposit Malaysian Ringgit into your exchange account via a bank transfer or other supported payment methods
- Select your preferred cryptocurrency from the list of approved cryptocurrencies on the platform
- Enter the amount your wish to purchase, place an order and confirm your transaction
- Secure your assets if possible by transerring your purchased cryptocurrencies to a personal wallet for added security
What Are the Approved Cryptocurrencies in Malaysia?
The table below highlights 19 approved cryptocurrencies in Malaysia, their use cases and key features.
List of Approved Cryptocurrencies in Malaysia 2025
| Cryptocurrency | Purpose | Key Features | Use Cases |
|---|---|---|---|
| Aave (AAVE) | Enables users to lend and borrow crypto assets without intermediaries | Smart contract-based lending, flash loans, variable and stable interest rates, support for 30+ digital assets, aTokens (interest-bearing tokens) | Decentralized lending and borrowing, flash loans for arbitrage trading, yield farming, liquidity provision |
| Curve DAO (CRV) | Focused on efficient stablecoin trading with low slippage and fees | Automated market maker (AMM) optimised for similar assets, low transaction fees, liquidity pools, governance token (CRV), yield farming | Stablecoin and ERC-20 token trading, liquidity provision, yield farming, governance participation |
| Maker (MKR) | Decentralised governance platform for managing the Dai stablecoin and the Maker Protocol | Governance token (MKR), community voting on protocol parameters, Collateralised Debt Positions (CDPs) for generating Dai | Stablecoin (Dai) creation and management, decentralised governance, collateralised lending |
| Synthetix (SNX) | Creating and trading synthetic assets (Synths) that track the value of real-world assets | Pooled collateral model, synthetic assets (Synths), infinite liquidity, integration with layer 2 solutions | Synthetic asset trading, derivatives market, exposure to real-world assets without direct ownership, DeFi applications |
| Stellar (XLM) | A decentralised payment network designed for fast, low-cost cross-border transactions and financial inclusion | Fast transactions (2-5 seconds), extremely low transaction costs, built-in decentralized exchange, asset tokenization | Cross-border payments, remittances, asset tokenization, micropayments, financial inclusion, stablecoin issuance |
| Bitcoin (BTC) | Bitcoin's primary purpose is to serve as a decentralised digital currency, enabling peer-to-peer transactions without the need for a central authority. | Bitcoin's key features include decentralisation, security through blockchain technology, a capped supply of 21 million coins, and immutability of transactions. | Bitcoin is commonly used for peer-to-peer payments, as a store of value, for remittances, and as an investment asset. |
| Ethereum (ETH) | The primary purpose of Ethereum is to facilitate and monetise the operation of smart contracts and decentralised applications (DApps). | Ethereum's key features include decentralisation, smart contracts, scalability, and the ability to host decentralised applications (DApps). | Ethereum is used in decentralised finance (DeFi), non-fungible tokens (NFTs), supply chain management, gaming, and healthcare, among other industries. |
| Avalanche (AVAX) | Avalanche is a smart contract platform designed to improve scalability, interoperability, and usability in blockchain technology. | Avalanche features a unique consensus mechanism, high transaction speed (processing thousands of transactions per second), low fees, and compatibility with Ethereum's toolkit. It also supports custom blockchain creation. | Avalanche is used for decentralised finance (DeFi), creating custom blockchains, enterprise-scale financial solutions, and decentralised applications (dApps). |
| Polygon (MATIC) | Polygon's primary purpose is to enhance Ethereum's scalability and usability by providing a Layer 2 scaling solution that reduces transaction fees and increases transaction speed. | Key features of Polygon include high scalability through its multi-chain architecture, interoperability with Ethereum, low transaction costs, and robust security mechanisms. | Polygon is commonly used in decentralised finance (DeFi), NFT trading, decentralised applications (dApps), and as a scaling solution for Ethereum-based projects. |
| Bitcoin Cash (BCH) | Bitcoin Cash is designed to be a transactional cryptocurrency that functions as an electronic cash payment system, addressing Bitcoin's scalability issues. | Bitcoin Cash features larger block sizes (up to 32 MB) for increased transaction capacity, faster transaction speeds, lower fees, and scalability compared to Bitcoin. | Bitcoin Cash is commonly used for peer-to-peer payments, remittances, and small transactions due to its low fees and fast processing times. |
| Ripple (XRP) | The primary purpose of Ripple (XRP) is to facilitate fast, low-cost international money transfers and currency exchanges, and to act as a bridge currency for liquidity management. | Ripple (XRP) features high transaction speed (3-5 seconds), low transaction fees (fractions of a cent), scalability (up to 1,500 transactions per second), and energy efficiency. | Ripple (XRP) is used for cross-border payments, remittances, micropayments, and liquidity management in the financial sector. |
| Litecoin (LTC) | Litecoin's primary purpose is to serve as a medium of exchange, offering faster and cheaper transactions compared to Bitcoin. It is often referred to as 'digital silver' to Bitcoin's 'digital gold.' | Litecoin features faster transaction speeds with a block time of 2.5 minutes, low transaction fees, the use of the Scrypt hashing algorithm, and a capped supply of 84 million coins. | Litecoin is commonly used for peer-to-peer payments, microtransactions, remittances, and e-commerce transactions. Its low fees and fast transaction times make it suitable for small-scale and cross-border payments. |
| Solana (SOL) | Solana aims to achieve high transaction speeds without sacrificing decentralsation, making it suitable for decentralised applications, smart contracts, and digital payments. | Solana is known for its high scalability, low transaction costs, and fast processing speeds. It employs a unique Proof of History (PoH) mechanism combined with Proof of Stake (PoS) for consensus, ensuring security and decentralisation. | Solana is used in decentralised finance (DeFi), non-fungible tokens (NFTs), gaming, and Web3 applications. |
| Chainlink (LINK) | To provide reliable data to smart contracts on the blockchain, enabling them to function better. | Decentralisation, scalability, interoperability, secure connections between smart contracts and off-chain data, and good data integrity. | Decentralised finance (DeFi), supply chain, gaming, stablecoins, and yield farming. |
| Uniswap (UNI) | Uniswap (UNI) serves as a decentralized exchange protocol for trading ERC-20 tokens and as a governance token for the Uniswap platform. | Uniswap features include decentralisation, automated market making (AMM), liquidity pools, and permissionless token listing. | Uniswap is used for governance, token swaps, liquidity provision, and enabling decentralized financial services without intermediaries. |
| Cardano (ADA) | To provide a secure, scalable, and sustainable blockchain platform for decentralised applications and smart contracts. | Layered architecture, energy-efficient Ouroboros proof-of-stake consensus mechanism, scalability, security, and sustainability. | Decentralised finance, supply chain management, digital identity, tokenization of assets, and peer-to-peer transactions. |
| Polkadot (DOT) | To enable interoperability between different blockchain networks, allowing them to communicate and share data seamlessly. | Scalability through parachains, security via a nominated proof-of-stake consensus mechanism, and decentralisation by enabling cross-chain communication without intermediaries. | Governance, staking, and bonding to access blockspace |
| Cosmos (ATOM) | To create an 'Internet of Blockchains' by enabling interoperability and scalability among independent blockchains. | Key features include the Tendermint consensus mechanism for scalability and security, the Cosmos SDK for modular blockchain development, and the Inter-Blockchain Communication (IBC) protocol for seamless interaction between blockchains. | Cosmos is used for decentralised applications, blockchain interoperability, governance, and staking. |
| Worldcoin (WLD) | Worldcoin aims to create a global financial and identity network using biometric identification technology to enhance financial inclusion, prevent identity fraud, and distinguish between humans and AI. | Worldcoin leverages biometric iris-scanning technology to create unique digital identities (World ID), operates on Ethereum's Mainnet with Optimism Layer 2 for scalability and low transaction costs, and uses zero-knowledge proofs to ensure privacy. | Worldcoin's use cases include digital identity verification, combating bots and fake accounts on social media, enabling secure voting systems, facilitating universal basic income distribution, and supporting decentralised applications (dApps). |
Source: Respective websites, SC Malaysia
How to Buy Cryptocurrency Safely in Malaysia
Buying cryptocurrency in Malaysia requires careful consideration of security, compliance, and platform reliability.
Regulated Exchanges
There are six registered and regulated cryptocurrency exchanges in Malaysia: Luno, SINEGY, Tokenize, MX Global, Hata, and Torum. These platforms provide a secure environment for crypto transactions while adhering to local regulations.
Security Measures
Implementing robust security measures is crucial when dealing with cryptocurrencies. Enable two-factor authentication (2FA) on all your accounts and use strong, unique passwords for each platform. It’s also advisable to store your assets in a secure wallet, preferably a hardware wallet for long-term storage, instead of leaving them on exchanges.
Scam Prevention
Vigilance against scams is essential in the crypto space. Be cautious of fake investment platforms and unsolicited offers promising unrealistic returns. Always verify the legitimacy of any platform before investing, especially by checking if it’s registered with the SC. This due diligence can protect you from falling victim to fraudulent schemes that are unfortunately common in the cryptocurrency world.
Tax and Compliance
Understanding the tax and compliance landscape is important for Malaysian crypto investors. Current guidelines from LHDN indicate that individual investors do not pay capital gains tax on cryptocurrency investments in Malaysia.
However, active trading that resembles business activity may be subject to income tax, and businesses involved in crypto transactions are subject to income tax on their profits. It’s crucial to stay informed about regulatory updates, as Malaysia is considering introducing specific crypto and blockchain legislation to further regulate the sector.
Are There Shariah-Compliant Crypto Options Available?
For Muslim investors, ensuring that cryptocurrency investments align with Islamic finance principles is a priority. A Shariah-compliant crypto Malaysia has must adhere to guidelines such as: avoiding riba (interest), meaning the investment must not involve interest-based lending or borrowing.
Next, it has to ensure transparency, meaning that the crypto asset must be backed by ethical use cases, avoiding speculation or gambling elements.
Just last year, Halogen Capital launched Malaysia’s first shariah-compliant crypto funds, which are under the oversight of established Shariah advisors, including Tawafuq Consultancy and Amanie Advisors. Shariah-compliant funds being offered include Halogen Shariah Ethereum Fund (HSETHF) and Halogen Shariah Bitcoin Fund (HSBTCF).
What’s the Current State of Cryptocurrency in Malaysia?
Aside from cryptocurrency exchanges providing its offering to Malaysians, banks like Affin Bank and digital asset fund managers like Halogen are slowly coming into the picture too. Affin Bank became the first bank here to offer a crypto ETF fund, while Halogen launched the country’s first Shariah-compliant crypto fund.
Luno also offers Luno Bundles, allowing Malaysian investors to diversify their crypto portfolios. The plan rebalances automatically every 3 months, based on updates from CoinDesk Indices.
Finally, Kenanga Investment Bank Berhad, through its private equity arm Kenanga Private Equity Sdn Bhd, has agreed to acquire a 19% stake in Tokenize, a cryptocurrency trading platform.
On the flip side, the Malaysian Digital Asset Platform Association has called out for investors to be wary about crypto scams, which were on the rise towards the end of 2024, nearing US$100,000 in value.
While the regulatory environment is still developing, the country has taken significant steps to provide a framework for safe and legal cryptocurrency trading. As with any investment, it’s essential to do your own research, understand the risks involved, and only invest what you can afford to lose.
FAQs
Are there any limits on how much cryptocurrency I can buy in Malaysia?
Currently, there are no specific legal limits on the amount of cryptocurrency you can buy in Malaysia. However, individual exchanges may impose their own limits based on factors such as account verification level, trading volume, or risk management policies.
Additionally, large transactions may trigger anti-money laundering (AML) and know-your-customer (KYC) checks. It’s also worth noting that while there’s no cap on purchases, Malaysian banks and financial institutions may have their own policies regarding transfers to and from cryptocurrency exchanges.
Some banks might impose limits or require additional documentation for large transfers. Always check with your chosen exchange and bank for their specific policies and limits.
Can I use my Malaysian bank account to buy cryptocurrency?
Yes, you can generally use your Malaysian bank account to buy cryptocurrency on registered Digital Asset Exchanges (DAXs) in Malaysia. Most approved exchanges support bank transfers from major Malaysian banks. However, the specific methods and banks supported can vary between exchanges.
Some platforms may also offer additional payment options such as FPX (Financial Process Exchange) for instant bank transfers. It’s important to note that while using your bank account is typically the most straightforward method, some banks may have restrictions or additional requirements for cryptocurrency-related transactions.
Always check with both your bank and the chosen cryptocurrency exchange for the most up-to-date information on supported payment methods and any potential restrictions.
How do I report cryptocurrency earnings on my Malaysian tax return?
Reporting cryptocurrency earnings on your Malaysian tax return can be complex, as the tax treatment of cryptocurrencies is still evolving. Currently, Malaysia does not have specific regulations for taxing cryptocurrency gains.
However, if you’re using cryptocurrencies for business purposes or engaging in frequent trading activities that could be considered a source of income, you may need to report these earnings on your tax return.
It’s advisable to keep detailed records of all your cryptocurrency transactions, including dates, amounts, and the purpose of each transaction. Given the complexity and changing nature of cryptocurrency taxation, it’s highly recommended to consult with a qualified tax professional who is familiar with both Malaysian tax laws and cryptocurrency regulations to ensure proper reporting and compliance.
