Bitcoin continues to witness massive adoption in various countries, including Malaysia. Are you in Malaysia and looking to buy your first Bitcoin? Well, this article is for you. We will show you how to safely purchase BTC in this country.
Is Bitcoin Legal in Malaysia?
The Malaysian government allows its citizens to trade Bitcoin. However, it does not recognize the digital currency as legal tender. Further, all crypto platforms operating in Malaysia are required to obtain licenses from relevant authorities and adhere to policies like Anti-Money Laundering and Know Your Customer in an effort to block illegal transactions.
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Crypto Taxes in Malaysia
Bitcoin is considered a security by the Malaysian government. That means its long-term holders do not pay capital gains tax. However, Bitcoin traders who regularly generate profits from trading the crypto asset must pay income tax.
Bitcoin Wallets in Malaysia
Before purchasing BTC in Malaysia, selecting the right wallet to store your digital coin is crucial. There are various types of Bitcoin wallets to choose from. They include:
Exchange Wallets
Exchange wallets are popular among novice investors due to their ease of use. They are provided by centralized crypto exchanges. Although exchange wallets are easy to use, they have several downsides. For example, users lack total control over their Bitcoin holdings because the exchanges act as custodians of their wallet keys.
Mobile Wallets
These wallets come in the form of mobile apps, available on Play Store and App Store. Many experienced Bitcoin holders prefer mobile wallets to exchange wallets since they are custodians of wallet keys, thus giving them more control over their Bitcoin holdings.
However, mobile wallets are an easy target of cybercriminals since they are connected to the internet.
Hardware Wallets
Malaysians who want to store their Bitcoin offline can consider buying hardware wallets, which cybercriminals cannot attack.
Where to Buy Bitcoin in Malaysia
Most Malaysians prefer purchasing Bitcoin from centralized crypto exchanges. But before buying BTC from any of these platforms, it is important to check whether they follow stipulated laws.
Here are some of the top crypto exchanges in Malaysia.
Binance
Binance, the world’s largest crypto exchange by trading volume, was banned from serving Malaysia in 2021. However, the ban was lifted the following year, allowing Malaysians to buy Bitcoin from the exchange. Many prefer Binance to its competitors due to its high liquidity that enables quick completion of trades.
Luno
Luno was the first exchange to obtain an operating license from the Malaysian authorities. It comes as a mobile app equipped with multiple advanced features that give users an exceptional user experience.
How to Buy Bitcoin From a Crypto Exchange in Malaysia
Buying BTC from a centralized exchange is simple. Here are the steps to follow:
1. Select your preferred crypto exchange and create an account.
2. Verify your identity by submitting details like your identification document and a selfie.
3. Fund your account with the USDT stablecoin using the supported payment methods.
4. Go to the spot market, then search for the BTC/USDT trading pair.
5. Place a buy order.
Your BTC will be available in your exchange wallet within a few seconds.
Bitcoin ATMs in Malaysia
There are numerous Bitcoin ATMs in Malaysia, most of which are found in gas stations and supermarkets. Malaysians can use these ATMs to buy and sell BTC. However, the transaction charges are higher than those imposed by exchanges.
Buying Bitcoin From a P2P Platform in Malaysia
You can buy Bitcoin directly from another Malaysian through peer-to-peer platforms like Paxful and Reminato. Here is how to do it on Paxful:
1. Download the Paxful app and set up an account.
2. Click the “Buy” button, then select Bitcoin.
3. Specify the amount of Bitcoin you want to purchase and send money to the merchant using their preferred payment method.
4. Notify the seller about the money transfer and request them to release your Bitcoin.
The purchased BTC will be stored in your Paxful account. For safety purposes, it is advisable to transfer it to a non-custodial wallet.