How to buy Bitcoin in Malaysia
Bitcoin (BTC) is the world's first decentralized cryptocurrency. It is a cross-border resource that allows its users to buy and trade globally without restrictions. Despite this accessibility, users in different countries may have to access Bitcoin in different ways due to their government's stance on the leading digital currency.
Fortunately for Malaysian crypto traders, it is legal to buy Bitcoin in Malaysia. Malaysia's Bitcoin regulations allow regulated exchanges, Bitcoin ATMs and more to operate in the country. For those who want to buy Bitcoin with Malaysian Ringgit, this article serves as a step-by-step guide to buying Bitcoin in Malaysia.
First, here is a quick look at the laws regarding cryptocurrency in Malaysia.
The legal status of Bitcoin in Malaysia
As of April 2024, it will be legal to buy Bitcoin in Malaysia. However, Bitcoin is not legal tender in the country. While it is legal to hold and buy Bitcoin, cryptocurrency payment methods are prohibited by local businesses in Malaysia unless the business expressly chooses to accept them.
Likewise, it is important to buy from a legally supported exchange in Malaysia. The exchange follows Malaysia's cryptocurrency laws, which are regulated to reduce the risk of theft and fraud in Malaysia, including Anti-Money Laundering (AML) and Know Your Customer (KYC) policies.
That is, the Malaysian government considers Bitcoin as a security. This classification as a security means that Bitcoin transactions are not subject to capital gains tax. However, if high-profit traders make enough profits, their income may fall under income tax.
How to buy Bitcoin safely in Malaysia
There are many ways to buy Bitcoin in Malaysia. Prospective crypto buyers must obtain a crypto wallet before participating.
Crypto wallets in Malaysia come in different forms such as exchange, mobile or hardware wallets.
Exchange wallets
Exchange wallets are one of the most popular crypto wallets. As the name suggests, crypto exchanges provide wallets for users to hold and trade their assets. Exchange wallets are great for everyday traders as they connect to the internet with assets that are always readily available.
Despite their merits, the trade-off is undisturbed. Crypto trading platforms are under threat from theft and bad actors. If an exchange is hacked and money is stolen, the user's holdings can be lost.
Mobile wallets
Mobile wallets are tied to the user's mobile device. Mobile wallets, which are often used via an app, are considered more secure than exchanges because they are managed on a single device rather than a third-party custodian.
As for mobile wallet disadvantages, losing a mobile device means losing access to the crypto wallet. Bad actors can steal mobile wallet information through external methods, so it is best to avoid open networks.
Hardware bags
Hardware wallets are one of the safest Bitcoin investment options in Malaysia due to their offline features and top-notch security algorithms. Hardware wallets are ideal for long-term storage as they rarely connect to the internet. This lack of connectivity protects them from hackers and other threats.
After buying a crypto wallet, users can buy and store bitcoins through exchanges or ATMs, among other methods.
Malaysian fiat-to-crypto exchanges
Users need to create a crypto exchange account at one of the many cryptocurrency exchanges in Malaysia. Most exchanges comply with the country's KYC and AML policies and allow Bitcoin purchases with credit/debit cards in Malaysia. Here is a list of some Bitcoin brokers in Malaysia:
Binance
Although Binance was one of the few cryptocurrency platforms that was briefly banned in Malaysia, it was able to be found again in the region in March 2022.
Binance is one of the largest cryptocurrency exchanges in the world. Malaysian citizens should fund their account at their local bank or by sending crypto from another wallet or currency. Binance offers various trading methods to customize the experience, such as limit and market orders, stop-limit orders and others.
the moon
In the year Founded in 2013, Luno is a long-standing crypto exchange and Malaysia's first fully licensed crypto trading platform.
The platform's mobile app allows buying and selling crypto as well as some basic trading capabilities like scheduled trading. It also provides an extensive learning platform for users to engage in cryptocurrency education in Malaysia.
Bitcoin ATMs in Malaysia
Bitcoin ATMs are a convenient way to enter the Malaysian crypto market, as they are designed to be an accessible method of purchase. One can usually find a Bitcoin ATM in a local supermarket or gas station.
One can deposit some money into the machine to use Bitcoin ATM. From there, a QR code will appear where the user can scan the money and transfer it to their Bitcoin wallet, one of the many secure ways to buy Bitcoin in Malaysia.
Unfortunately, this accessibility comes at a price. Bitcoin ATMs often charge higher fees than other methods of purchase.
You can find Malaysian Bitcoin ATMs in various places like Langkawi, Petaling Jaya and Klang.
How to buy Bitcoin peer-to-peer in Malaysia
Peer-to-peer trading is Bitcoin's original purpose and remains an alternative way to make Bitcoin purchases in Malaysia. It involves buying or selling bitcoins directly with an individual, eliminating third-party intermediaries. Paxful and Reminato are among the most common P2P platforms in Malaysia.
Traders can meet in person or use a peer-to-peer platform to buy bitcoins. The following are general standards for peer-to-peer Bitcoin trading in Malaysia. Crypto traders can fund their wallets through bank transfers, credit/debit, gift cards and many other ways. When it comes to financing, there are two main ways to shop: create an offer or browse existing offers.
When creating a purchase offer, the merchant must select the purchase method. You can then choose between a market rate or a fixed rate. The market price follows Bitcoin's price movements, while a fixed price involves determining the exact price someone is willing to pay.
If buying at market price, the trader must set a supply margin. This is the percentage you are willing to part with the market price of Bitcoin when you buy it. For example:–10% margin means that the seller wants to buy 10% less than the market price as soon as the offer is accepted.
Once the discount buying method and margins are set, one needs to set the time limit for the order. Time Limit Once an offer is made, the buyer determines how long they have to buy. If the buyer does not complete the offer within this time frame, the seller's offer expires.
Finally, there are a few advanced options for configuration. Buyers can write delivery terms and business instructions, choose a country to target, and even restrict proxy or virtual private network users, among other options.
In addition to creating an offer, users can also browse past sales orders. Buyers can filter sales orders by discount location and accepted payment methods or browse general sales orders. When selecting a sell order, the buyer can view the seller's profile information, profit margin, ID verification and trade time limit. If everything looks good, the buyer will enter the amount of Bitcoin they want. You can chat with the seller and ask more questions.
Once it's ready, the buyer commits to the purchase, and their money goes in. The seller sends Bitcoin using the preferred method, and once the Bitcoin blockchain confirms the transaction, it appears in the buyer's wallet.
The future of cryptocurrencies in Malaysia
The future of cryptocurrencies in Malaysia is uncertain. Despite growing acceptance, Bank Negara Malaysia – the country's central bank – has yet to declare cryptocurrencies as legal tender and has warned of potential risks. However, the Securities Commission Malaysia regulates cryptocurrency exchanges, which shows some level of government recognition.
The government explores potential benefits but remains cautious about volatility and abuse. The outcome probably depends on how the control environment changes. Malaysia may decide on stricter regulations or gradual acceptance and stronger consumer protection. The future fate of cryptocurrencies in the Malaysian economy will largely be shaped by its impact on traditional finance and its ability to foster innovation in a regulated environment.
