To combat tax evasion in the cryptocurrency sector, the Inland Revenue Board (IRB) of Malaysia has initiated a special operation called “Ops Token”.
This campaign, carried out with the assistance of the Royal Malaysian Police and CyberSecurity Malaysia, targeted several business entities in the Klang Valley suspected of under-reporting their activities. cryptocurrency transactions.
Details of the “Ops Token” initiative
As reported by local media outlet, The Malaysian Reserve, the operation involved comprehensive raids in ten different locations, aimed at mitigating significant “tax revenue leaks” linked to digital asset trading discovered as part of the suspicions. above.
Notably, the “Ops Token” reflects the Malaysian government’s efforts to tighten tax compliance among cryptocurrency traders and commercial entities.
According to the Malaysian Reserve report, data collected during these raids revealed significant non-compliance, with many entities failing to properly report their cryptocurrency transactions. The IRB noted:
The data obtained will be analyzed in detail to obtain the value of the cryptocurrency assets traded and the profits generated by the activity, thereby identifying the true value of tax leaks that were never reported to the IRB.
This notably prompted the IRB to warn all individuals and companies engaged in digital currency trading to comply with Malaysia’s rules. tax regulations or face strict enforcement measures.
According to IRB director-general Datuk Dr Abu Tariq Jamaluddin, the move is expected to improve Malaysia’s “tax efficiency” and increase its revenue by closing loopholes that previously allowed tax leakages.
Global Crypto Tax Strategies: A Series of Divergent Approaches
It is worth noting that Malaysia is not alone in intensifying monitoring of tax evasion in the digital currency sector.
Earlier last month, the Australian Taxation Office (ATO) began monitoring around 1.2 million crypto-related accounts to address “tax gaps” a move indicative of Australia’s broader crackdown on tax evasion amid growing interest in digital currencies in the region, as Bitcoinist reports citing Reuters.
Conversely, Turkey has adopted a different approach. The country’s Treasury and Finance Minister, Mehmet Simsek, recently said the government had no plans to tax profits from stocks and cryptocurrencies.
However, the Turkish government is considering introducing a minimum transaction tax on these assets, although the details have not yet been disclosed.
While some may view Turkey’s approach to crypto tax as entirely acceptable compared to other countries, Mehmet Gerz, CEO of Ata Portfoy, expressed concerns over the proposed tax, suggesting that even a minor levy on stock transactions could create “market inefficiencies, increased commissions”. costs and discourage commercial activities.
Featured image created with DALL-E, chart from Tradingview
