In Malaysia, cryptocurrency is considered an asset rather than a currency. This means that there are no laws regulating the buying or selling of cryptocurrencies. However, the central bank, Bank Negara Malaysia (BNM), has issued a warning to the public about the risks associated with investing in cryptocurrencies.
Despite that, the Malaysian government has shown an openness to blockchain technology and its potential applications. The Securities Commission of Malaysia (SC) has even launched a regulatory framework for initial coin offerings (ICOs).
If you’re looking to buy crypto in Malaysia, there are a few things you need to know. In this article, we’ll guide you through the process of buying cryptocurrency in Malaysia.
The Latest Crypto Regulations In Malaysia
Although cryptocurrencies are not legal tender in Malaysia, they can operate freely after registering themselves with the Malaysian Securities Commission.
Bank Negara Malaysia, the country’s central bank, has issued a statement confirming that Bitcoin is not legal tender and urging the public to ignore any rumours that state otherwise.
In 2022, Malaysia’s Finance Minister remarked that the government’s position on cryptocurrencies was unlikely to change in the near future by saying: “Digital assets such as Bitcoin and Ethereum are not suitable to be used as a payment instrument… In general, digital assets are not a store of value and a good medium of exchange.”
Despite this official stance by the Government of Malaysia, cryptocurrency trading and ownership are still alive and well in the country.
Many exchanges exist in Malaysia that allow users to buy and sell cryptocurrencies. These exchanges usually require users to verify their identity with a government-issued ID.
Currently, the most popular cryptocurrencies in Malaysia are Bitcoin, Ethereum, and Ripple.
Young Malaysians, in particular, are driving the country’s cryptocurrency boom with most buyers being between the ages of 25 and 34.
How To Buy Crypto In Malaysia?
There are many ways to buy cryptocurrency in Malaysia. Here are some of the most popular methods:
1. Crypto Exchanges
The easiest way to buy cryptocurrency in Malaysia is through a cryptocurrency exchange. There are many exchanges available, but make sure to choose one that’s reputable and has a good track record.
Once you’ve chosen an exchange, you’ll need to create an account and verify your identity. Once your account is verified, you can deposit Malaysian Ringgit (MYR) into your account and use it to buy cryptocurrency.
Some exchanges also allow you to buy crypto with a credit or debit card. However, this option is usually only available to residents of certain countries.
Once you’ve bought cryptocurrency, you can store it in a wallet. Again, there are many wallets available, but make sure to choose one that’s compatible with the currency you’ve bought.
2. ATMs
Another popular way to buy crypto is through ATM machines. There are a few Bitcoin ATM machines in Malaysia, such as in Kuala Lumpur and Penang. To buy crypto from an ATM, you’ll need to have a wallet that’s compatible with the currency you want to buy.
3. Peer-to-Peer (P2P)
You can also buy crypto through peer-to-peer (P2P) platforms. These platforms allow you to buy crypto from other people in Malaysia. Popular P2P platforms include LocalBitcoins and Paxful. To buy crypto on these platforms, you’ll need to create an account and deposit Malaysian Ringgit (MYR) into your account. Once that’s done, you can browse the listings and find someone selling the currency you want to buy.
4. Brokers
Another common way to buy crypto is through brokers. There are a few popular cryptocurrency brokers in Malaysia, such as Bitcoin.my and Remitano. To buy crypto from a broker, you’ll need to create an account and deposit Malaysian Ringgit (MYR) into your account. Once that’s done, you can browse the broker’s listings and find the currency you want to buy.
5. Crowdfunding
Crowdfunding platforms like Kickstarter and Indiegogo have also started to accept cryptocurrency as a form of payment. This means that you can use crypto to back projects that you’re interested in and receive crypto rewards in return.
6. Online Wallets
Online wallets are another popular way to store and buy crypto. These wallets allow you to store your crypto online, which makes it more convenient to buy and sell. Also, online wallets usually have built-in exchanges, which makes it even easier to buy and sell crypto.
7. Offline Wallets
If you’re looking for more security, you can also store your crypto in an offline wallet. These wallets are usually in the form of a USB drive or a hardware wallet. Popular offline wallets include the Ledger Nano S and the Trezor.
8. Mobile Wallets
Mobile wallets are another convenient way to store and buy crypto. These wallets allow you to store your crypto on your mobile phone, which makes it more convenient to buy and sell. Popular mobile wallets include Coinbase Wallet and Blockchain Wallet.
Overall Outlook Of Crypto In Malaysia
The Malaysian government has been supportive of cryptocurrency and blockchain technology. In 2018, the Securities Commission of Malaysia released guidelines for ICOs and digital assets. In 2019, the central bank of Malaysia announced that it was working on a cryptocurrency regulatory framework.
It’s 2022, and although cryptocurrency is not legal tender in Malaysia, it is widely accepted by businesses and individuals. There are many cryptocurrency exchanges and brokers operating in the country, and ATM machines that allow you to buy cryptocurrency. You can also buy cryptocurrency through P2P platforms and online wallets.
The future of cryptocurrency in Malaysia looks bright, and the Malaysian government’s supportive stance is likely to continue. And with countries like El Salvador making cryptocurrency a legal tender, many countries are likely to follow suit in the next few years, and Malaysia might be one of them as well.
