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As Malaysia continues its path to economic growth and diversification, bitcoin and cryptocurrencies emerge as a potential catalyst for further development. With a technological population and a supportive position on the part of the financial authorities, Malaysia is ready to take the benefits of Bitcoin.
Here’s what you need to know about Bitcoin in Malaysia:
Bitcoin Legal Statute
Although not recognized as legal tender, Bitcoin is not illegal in Malaysia. It has a similar status of gold and is valuable but without regulatory protection. The Central Bank, Bank Negara Malaysia, has no plans to prohibit cryptocurrency trade and has implemented cryptocurrency regulations to prevent money laundering and terrorist funding.
Observance of Sharia
Bitcoin is considered a halal (admissible) under the Sharia law, opening the doors for Muslim investors to deal with bitcoin transactions. The Government Advisory Committee also collaborates with a blockchain development company in South Korea to create a Sharia compatible blockchain technology for various applications.
Bitcoin taxation
Currently, cryptocurrency transactions are tax -free in Malaysia under existing income tax and capital tax laws. However, proper records are essential for the future tax reporting, as regulators are expected to introduce specific laws for taxation of bitcoin in the future.
Malaysian projects
In collaboration with the Central Bank, nine Malaysian banks undertake an ambitious project to improve banking services through Blockchain integration. Although details are yet to be disclosed, this initiative shows Malaysia’s commitment to the adoption of technological progress.
At Coinmama, we advise our customers to be informed of the developing regulatory landscape and to maintain accurate records of their bitcoin transactions. With Malaysia’s increasing interest in blockchain technology and Bitcoin’s reception, the nation is well positioned to use digital innovations to continue progress.
