To curb tax evasion within the cryptocurrency sector, the Malaysian Inland Revenue Board (IRB) has initiated a special operation named “Ops Token.”
This campaign, conducted with the assistance of the Royal Malaysia Police and CyberSecurity Malaysia, targeted several business entities across the Klang Valley suspected of underreporting their cryptocurrency transactions.
Details Of The ‘Ops Token’ Initiative
As reported by a Local media outlet, The Malaysian Reserve, the operation involved comprehensive raids at ten different locations, aiming to mitigate substantial “tax revenue leakages” linked to digital asset exchanges found under the suspicion above.
Notably, the “Ops Token” reflects the Malaysian government’s efforts to tighten tax compliance among cryptocurrency traders and business entities.
According to The Malaysian Reserve report, the data collected during these raids revealed significant non-compliance, with many entities failing to declare their cryptocurrency transactions adequately. The IRB noted:
The data obtained will be analysed in detail to obtain the value of the cryptocurrency assets traded and profits generated from the activity thus identifying the true value of tax leakage that was never delcared to the IRB.
Notably, this has prompted the IRB to warn all individuals and firms engaged in digital currency trading to comply with Malaysia’s tax regulations or face stringent enforcement actions.
According to IRB chief executive officer Datuk Dr Abu Tariq Jamaluddin, this operation is expected to enhance Malaysia’s “tax efficiency” and boost revenue by plugging loopholes that previously allowed tax leakages.
Global Crypto Tax Strategies: A Series Of Divergent Approaches
Notably, Malaysia is not alone in intensifying scrutiny over tax evasion within the digital currency sector.
Earlier last month, the Australian Taxation Office (ATO) began closely monitoring around 1.2 million crypto-related accounts to address “tax discrepancies,” a move indicative of Australia’s broader crackdown on tax evasion amidst increasing interest in digital currencies in the region, as reported by Bitcoinist citing Reuters.
Conversely, Turkey has taken a different approach. The country’s Treasury and Finance Minister, Mehmet Simsek, recently stated that the government has no plans to tax profits from stocks and cryptocurrencies.
However, the Turkish government is considering a minimal transaction tax on these assets, though details have not yet been disclosed.
While some may see the Turkey crypto tax approach as being quite okay compared to other countries, Mehmet Gerz, CEO of Ata Portfoy, expressed concerns about the proposed tax, suggesting that even a minor levy on stock transactions could create “market inefficiencies, increased commission costs, and discourage trading activities.”
Featured image created with DALL-E, Chart from Tradingview
