Malaysia Affirms That Profits from Cryptocurrency Trading, Mining, and Exchange Activities Are Taxable

Malaysia’s Ministry of Finance has confirmed that income earned through cryptocurrency trading, mining, and exchange activities is taxable under the Income Tax Act 1967, as digital currencies are treated as commodities and business income. While capital gains from long-term holdings remain non-taxable, the IRB’s new guidelines clarify that frequent trading and mining constitute taxable business operations. Additionally, since 2020, digital services—including those from foreign crypto exchanges—are subject to service tax. Taxable income is assessed based on net profits after allowable deductions, and specific company tax details remain confidential under Section 138.

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