Malaysia
Crypto held as investment is exempt from capital gains tax. But if you trade frequently (day trading), it becomes taxable as business income. The line between 'investment' and 'trading' is subjective.
FATCA Partner
Yes
FATF Status
Clear
EU Blacklist
No
Dual Nationality
Not allowed
CARF Status
Committed
Bitizenship
Not yet
CARF Reporting
Committed
Malaysia has committed to implementing CARF but has not yet specified an exact timeline. When active, crypto service providers will be required to report user transactions to tax authorities.
Tax Rates
Activity Taxes
Staking
Potentially taxable if regular income source
Mining
Taxable as business income if regular activity
DeFi
Unclear; may be taxable if regular
NFTs
Unclear
Taxable Events
Crypto → Fiat
Not taxable
Crypto → Crypto
Not taxable
Holding Period
No holding period benefit
No specific holding period; based on frequency/intent of trading
Regulation & Residency
Regulatory Body
Securities Commission Malaysia; Inland Revenue Board (LHDN)
Residency Requirement
MM2H (Malaysia My Second Home) program; various work visas
Reporting Requirements
Must report if classified as business income
Citizenship & Residency Path
MM2H visa via financial requirements; citizenship very rare for foreigners
Resilience & Plan B
Jurisdictional Resilience
How well-equipped this jurisdiction is for a crypto holder who wants stability, access, and protection.
JRS
Institutions (25%), banking (20%), tax clarity (20%), business (15%), privacy (10%), geopolitical (10%). Full methodology →
Plan B Readiness
How fast you can go from “I want to move” to “I’m a tax resident with banking and optionality.”
PBR
Business ease (25%), citizenship path (20%), dual nationality, quality of life & safety (15% each), Bitizenship (10%). Full methodology →
Notable Conditions
- →Crypto not viewed as capital asset or legal tender
- →Tax exemption only applies to non-regular, non-repetitive transactions
- →Day traders / frequent traders WILL be taxed as business income
- →Tax authorities may reclassify profits as business income retroactively
- →Moderate cost of living with good infrastructure
Living & Lifestyle
Cost of Living
Low
Banking Access
Good
Quality of Life
High
Lifestyle Scores