Malaysia's Inland Revenue Board (IRB) has initiated "Ops Token," a crackdown aimed at curtailing tax evasion in the crypto trading sector. The operation, executed jointly with the Royal Malaysia Police and CyberSecurity Malaysia (CSM), targeted 10 locations in the Klang Valley where entities allegedly failed to report their crypto trading activities accurately.

The IRB's objective with Ops Token is to minimize tax revenue leakage and enhance the overall efficiency of the country's tax administration. During the operation, authorities seized mobile devices and computers containing cryptocurrency trading data. This data will be crucial in determining the extent of tax evasion and undisclosed profits, according to IRB officials.

Datuk Abu Tariq Jamaluddin, CEO of IRB, emphasized that individuals involved in crypto trading are obligated to adhere to Malaysia's income tax regulations. He issued a stern warning for crypto traders to promptly declare their incomes to the nearest IRB offices to avoid potential compliance actions.

The IRB anticipates that Ops Token will bolster Malaysia's tax revenue by plugging leaks and ensuring compliance with tax laws. This initiative is part of Malaysia's broader regulatory framework where cryptocurrencies are recognized as securities under the jurisdiction of the Securities Commission. However, they are not considered legal tender by the country's central bank.

Crypto-related businesses operating in Malaysia are subject to the nation's income tax laws, underscoring the importance of proper tax reporting and compliance within the burgeoning sector.