With 3 million Malaysians under the younger demographic actively using cryptocurrencies, it’s apparent that it is 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.
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?
The Securities Commission of Malaysia has currently approved six cryptocurrency exchanges to operate here: Luno, SINEGY, Tokenize, MX Global, Hata, and Torum.
| 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 | ||
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 13 approved cryptocurrencies in Malaysia, their use cases and key features.
|
Cryptocurrency Name
|
Purpose
|
Key Features
|
Use Cases
|
|---|---|---|---|
| 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. |
| 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. |
| 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. |
| 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. |
| 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. |
| 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). |
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.
