The Inland Revenue Board (IRB) of Malaysia has initiated a specialized operation named “Ops Token” aimed at tackling crypto tax evasion and enhancing overall tax compliance across the country.

IRB Malaysia's Offensive Against Crypto Tax Evasion
The Inland Revenue Board (IRB) of Malaysia has launched "Ops Token" in collaboration with the Royal Malaysia Police and CyberSecurity Malaysia (CSM), deploying 38 personnel across 10 locations in the Klang Valley.

Reports indicate that cryptocurrency transactions in Malaysia have surged to approximately RM1.441 trillion ($340 billion) this year.

During the operation, IRB officials accessed cryptocurrency trading data stored on mobile devices and computers to trace digital assets and evaluate associated profits. Instances were uncovered where entities had been established solely for cryptocurrency transactions to evade tax obligations.

The tax authority emphasized that the collected data will undergo thorough analysis to determine the value of cryptocurrency assets traded and profits generated, aiming to uncover previously undisclosed tax evasion.

Commenting on the initiative, CEO Datuk Dr Abu Tariq Jamaluddin stressed that individuals engaged in cryptocurrency trading must adhere to income tax regulations in Malaysia. He urged all involved parties to promptly declare their taxes at the nearest IRB office to avoid penalties for non-compliance.

The implementation of "Ops Token" seeks to enhance Malaysia's revenue by curbing tax evasion and optimizing tax administration efficiency, reinforcing the country’s fiscal sustainability efforts.

Cryptocurrency Trading and Regulatory Scrutiny
Cryptocurrency trading has frequently been associated with tax evasion cases, prompting calls for stricter regulations and robust reporting standards.

The collapse of FTX cryptocurrency exchange due to fraudulent reporting and fund mismanagement underscores the regulatory challenges and heightened scrutiny facing the cryptocurrency sector globally.

In the United States, the Biden administration has proposed stricter tax compliance measures, including mandatory reporting of cryptocurrency transfers exceeding $10,000 to the Internal Revenue Service (IRS).

In Nigeria, Tigran Gambaryan, a compliance officer at Binance, faced charges of tax evasion and money laundering, highlighting the regulatory complexities confronting cryptocurrency exchanges across different jurisdictions.

The incident, which Gambaryan was later cleared of, underscores the importance of transparent financial practices and regulatory compliance within the cryptocurrency industry.

As countries worldwide grapple with evolving regulatory landscapes, initiatives like "Ops Token" in Malaysia reflect ongoing efforts to ensure compliance and integrity in cryptocurrency transactions, safeguarding national revenues and investor interests.