Bitrabo Editorial
The Malaysian Inland Revenue Board (IRB) has launched a special operation called “Ops Token” to combat tax evasion in the cryptocurrency sector.
Working alongside the Royal Malaysia Police and CyberSecurity Malaysia, the campaign targeted businesses in the Klang Valley suspected of underreporting their cryptocurrency transactions.
Overview of the ‘Ops Token’ Initiative
As per The Malaysian Reserve, the operation involved raids at ten locations to address significant “tax revenue leakages” associated with digital asset exchanges.
The initiation of “Ops Token” underscores the Malaysian government’s resolve to ensure tax compliance within the cryptocurrency realm.
During the raids, data was gathered revealing widespread non-compliance, with entities failing to properly declare their cryptocurrency dealings. The IRB emphasized the need for adherence to tax regulations among digital currency traders and entities.
The collected data will be meticulously scrutinized to assess the value of cryptocurrency assets traded and profits gained, enabling the identification of undisclosed tax leakages.
The IRB cautioned that strict enforcement actions would be taken against individuals and businesses failing to comply with Malaysia’s tax laws.
According to IRB CEO Datuk Dr Abu Tariq Jamaluddin, the operation is aimed at enhancing tax efficiency in Malaysia and closing loopholes that previously facilitated tax evasion.
Global Perspectives on Crypto Tax Policies
Malaysia joins other nations in ramping up efforts to combat tax evasion in the digital currency domain.
Australia’s Taxation Office, for instance, has begun monitoring over 1.2 million crypto-related accounts to address tax discrepancies, signaling a broader crackdown on tax evasion amid growing interest in digital currencies.
In contrast, Turkey has indicated no intention to tax profits from stocks and cryptocurrencies. However, the government is contemplating a minor transaction tax on these assets, with specifics yet to be disclosed.
Despite some seeing Turkey’s tax stance favorably, concerns have been raised by Mehmet Gerz, CEO of Ata Portfoy, who fears that even a minor levy on stock transactions could lead to market inefficiencies, increased commission costs, and reduced trading activity.
Image Source: DALL-E, TradingView