Malaysia's Inland Revenue Board (IRB) has initiated a special operation called "Ops Token" to address tax evasion related to cryptocurrency transactions. The operation aims to reduce tax revenue leakage resulting from unreported crypto trading activities. The IRB collaborated with the Royal Malaysia Police and CyberSecurity Malaysia, conducting raids on ten locations in the Klang Valley.

The operation targeted companies suspected of evading taxes by not declaring their crypto trading activities. The IRB believes that several entities, including limited liability partnerships and corporate organizations, were established specifically for crypto trading without properly declaring taxes. The data obtained during the operation will be analyzed to determine the value of crypto assets traded and profits generated, enabling the IRB to identify the extent of tax leakage.

The IRB CEO emphasized that individuals engaging in crypto trading in Malaysia are subject to income tax rules and must declare their crypto taxes promptly. The operation aims to increase tax revenue and efficiency, reducing leakages and enhancing the sustainability of revenue collection. The IRB expects the operation to contribute to a more robust tax administration in the country.

The tax evasion crackdown is consistent with the government's objective to enhance tax administration and reduce revenue leakage. The IRB urges crypto traders to declare their taxes to avoid legal action, emphasizing that crypto trading in Malaysia is subject to taxation. The operation demonstrates the government's commitment to ensuring tax compliance in the cryptocurrency sector.

The "Ops Token" operation highlights the importance of tax transparency in the cryptocurrency market. As the sector continues to grow, it is crucial for investors and traders to prioritize tax compliance, and for regulatory bodies to maintain vigilance in preventing tax evasion. The operation sets a precedent for the government's stance on cryptocurrency tax evasion, emphasizing the need for accountability in the sector.