Cryptocurrency profits can be taxed

Profits from cryptocurrency transactions may be taxed as trading income if the activities show 'badges of trade' indicators, differing from capital gains tax on stock trading. These indicators include transaction frequency, profit intent, asset nature, involvement, and short-term profit aims. Dr. Mohd Fairuz A Razak from MATA emphasizes consulting knowledgeable tax advisors for specific situations. The Inland Revenue Board (LHDN) is reviewing high-frequency cryptocurrency transactions to determine taxable values and has updated guidelines on digital currency taxation. Recent data indicates Malaysian investors earned approximately $180 million from cryptocurrency markets last year.

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