The Malaysian Inland Revenue Board (IRB) has launched a special operation called "Ops Token." This campaign, conducted in collaboration with the Royal Malaysia Police and CyberSecurity Malaysia, targeted several business entities across the Klang Valley suspected of underreporting their cryptocurrency transactions.

The operation involved comprehensive raids at ten different locations, aiming to mitigate substantial "tax revenue leakages" linked to digital asset exchanges found under the suspicion above. The "Ops Token" reflects the Malaysian government's efforts to tighten tax compliance among cryptocurrency traders and business entities. The data collected during these raids revealed significant non-compliance, with many entities failing to declare their cryptocurrency transactions adequately. The IRB noted that the data obtained will be analyzed in detail to obtain the value of the cryptocurrency assets traded and profits generated from the activity, thus identifying the true value of tax leakage that was never declared to the IRB.

Notably, this has prompted the IRB to warn all individuals and firms engaged in digital currency trading to comply with Malaysia's tax regulations or face stringent enforcement actions. According to IRB chief executive officer Datuk Dr. Abu Tariq Jamaluddin, this operation is expected to enhance Malaysia's "tax efficiency" and boost revenue by plugging loopholes that previously allowed tax leakages.

Malaysia is not alone in intensifying scrutiny over tax evasion within the digital currency sector. Earlier last month, the Australian Taxation Office (ATO) began closely monitoring around 1.2 million crypto-related accounts to address "tax discrepancies," a move indicative of Australia's broader crackdown on tax evasion amidst increasing interest in digital currencies in the region. Conversely, Turkey has taken a different approach. The country's Treasury and Finance Minister, Mehmet Simsek, recently stated that the government has no plans to tax profits from stocks and cryptocurrencies. However, the Turkish government is considering a minimal transaction tax on these assets, though details have not yet been disclosed.

While some may see the Turkey crypto tax approach as being quite okay compared to other countries, Mehmet Gerz, CEO of Ata Portfoy, expressed concerns about the proposed tax, suggesting that even a minor levy on stock transactions could create "market inefficiencies, increased commission costs, and discourage trading activities." The situation highlights the diverse approaches being taken by governments worldwide to address the tax implications of the growing cryptocurrency market. As the global regulatory landscape continues to evolve, it remains to be seen how these different approaches will impact the future of digital currencies and the investors who engage with them.