To combat tax evasion in the cryptocurrency sector, the Malaysian Inland Revenue Board (IRB) has launched a special operation called “Ops Token.”
This initiative, conducted with the assistance of the Royal Malaysia Police and CyberSecurity Malaysia, targeted several business entities in the Klang Valley suspected of underreporting cryptocurrency transactions.
Details of the ‘Ops Token’ Initiative
According to The Malaysian Reserve, the operation involved comprehensive raids at ten locations to address significant “tax revenue leakages” linked to digital asset exchanges suspected of underreporting transactions.
The “Ops Token” underscores the Malaysian government’s efforts to enforce tax compliance among cryptocurrency traders and businesses. Data collected during the raids revealed substantial non-compliance, with many entities failing to adequately declare their cryptocurrency transactions. The IRB stated:
“The data obtained will be analyzed in detail to determine the value of cryptocurrency assets traded and profits generated, thereby identifying the true extent of undeclared tax liabilities.”
The IRB has warned all individuals and firms involved in digital currency trading to comply with Malaysia’s tax regulations or face stringent enforcement actions. According to IRB CEO Datuk Dr. Abu Tariq Jamaluddin, this operation aims to enhance Malaysia’s tax efficiency and boost revenue by addressing tax evasion loopholes.
Global Crypto Tax Strategies: Diverse Approaches
Malaysia is not alone in tightening scrutiny on tax evasion within the digital currency sector. Last month, the Australian Taxation Office (ATO) began monitoring approximately 1.2 million crypto-related accounts to address “tax discrepancies,” reflecting Australia’s broader crackdown on tax evasion amid growing interest in digital currencies.
In contrast, Turkey’s Treasury and Finance Minister, Mehmet Simsek, recently announced that the government has no plans to tax profits from stocks and cryptocurrencies. However, Turkey is considering a minimal transaction tax on these assets, although details have yet to be disclosed.
While some view Turkey’s approach to crypto tax as favorable compared to other countries, Mehmet Gerz, CEO of Ata Portfoy, expressed concerns that even a minor levy on stock transactions could create “market inefficiencies, increased commission costs, and discourage trading activities.”
Source: bitcoinist.com
