Best Crypto Exchanges in Malaysia

Best Cryptocurrency Exchanges in Malaysia

Following an analysis of the 17 digital asset exchanges available in Malaysia, we have identified the best options for residents. Our evaluation considers several factors, including compliance with Securities Commission Malaysia (SC) regulations, supported cryptocurrencies, MYR deposit options, features, and fee structures. Below is a comparison table of the top 5 platforms for Malaysian traders.

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1. Bybit

Bybit is the best exchange in Malaysia, boasting a user base exceeding 32 million and a daily trading volume of $25 billion, making it one of the most liquid platforms globally. It provides instant verification and supports free MYR deposit methods, simplifying the registration process. Users can trade over 1,200 digital assets on spot and futures markets with up to 100x leverage.

There are also a range of investment options, including staking, lending, and borrowing services, allowing users to earn up to 260% APY. The platform has a multilingual interface that can be used in Malay and offers live customer support in the language. Additional features include an NFT marketplace, copy trading services, a crypto card and TradeGPT.

• Fees: Maker fee of 0.02% and taker fee of 0.055% for futures and 0.1% for spot trading.
• Supported Assets: Over 1,200 digital assets.
• Regulation & Licensing: Fully compliant with Malaysia’s regulatory standards.‍
• MYR Deposit Methods: Bank transfer, credit card, debit card, Touch n Go, Apple Pay, Google Pay and Wise.

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2. Binance

Binance is the world’s largest exchange by userbase with over 210 million clients across Malaysia and 100 other countries. It is known for its deep liquidity with a daily trading volume of over $19 million across both order books. The platform supports more than 350 digital currencies, offering spot, margin, and futures trading with competitive fees. 

It also provides a variety of financial services, including staking, an OTC desk, options trading, and a crypto loan feature. The exchange ensures a user-friendly experience with an intuitive interface and comprehensive educational resources. Binance's robust security measures and compliance with global and Malaysian regulations enhance its reliability and trustworthiness.

• Fees: 0.1% for spot trades and a maker/taker rebate of 0.02%/0.06% for derivatives.
• Supported Assets: More than 350 cryptocurrencies.
• Regulation & Licensing: Regulated globally and available to Malaysian investors.‍
• MYR Deposit Methods: Bank transfers and credit or debit cards.

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3. Gate.io

Gate.io is the preferred platform for altcoin trading in Malaysia, offering access to a wide range of lesser-known cryptocurrencies, such as meme coins, dog coins, NFT tokens and altcoins. The exchange supports over 2,100 digital assets for spot, margin, and futures trading, with high leverage options up to 100x available for derivatives. 

The platform provides a diverse investment environment with features like staking, lending, and a robust rewards program. Another key feature is its simple user interface that can be used in Malay and 20 other languages. Gate.io's commitment to security, including regular security audits and compliance with global regulations, makes it a trustworthy option for Malaysian users.

• Fees: Maker orders start at 0.1% and taker orders at 0.2%.
• Supported Assets: Over 2,100 digital assets.
• Regulation & Licensing: Not regulated in Malaysia but available to residents.
• MYR Deposit Methods: Bank transfers, debit cards, credit cards, and PayPal.

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4. Uphold

Uphold is an excellent choice for beginners in Malaysia, offering a simple and intuitive platform for buying, selling, and staking cryptocurrencies. The exchange supports a variety of assets, including 250 cryptocurrencies, 4 precious metals, and 27 fiat currencies, allowing users to diversify and manage their portfolio on one single interface. 

Its simple interface and educational resources make it accessible to new users. The platform provides zero-commission trading and transparent pricing, enhancing the user experience. Uphold prioritizes security and transparency and undergoes regular audits of its proof-of-reserves to show all assets are backed on a 1:1 basis.

• Fees: 1% trading fee and an additional 1% spread fee.
• Supported Assets: Over 250 digital assets, 4 precious metals, and 27 fiat currencies.
• Regulation & Licensing: Regulated globally and available in Malaysia.
• MYR Deposit Methods: Debit card, credit card, Google Pay and Apple Pay.

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5. Luno

Luno is the leading cryptocurrency exchange in Malaysia and is based in Kuala Lumpur. It has a user-friendly platform and strong regulatory compliance within the country. The exchange offers easy MYR deposits through bank transfers and FPX payments. Luno supports popular cryptocurrencies like Bitcoin, Ethereum, and 23 other tokens.

The platform features an intuitive interface, making it accessible for beginners while providing advanced tools for experienced traders. Luno also emphasizes security and regulatory compliance, ensuring a safe trading environment. Its commitment to education and customer support further solidifies its position as a top choice for Malaysian traders.

• Fees: Maker fee of 0.25% and taker fee of 0.25%.
• Supported Assets: 25 cryptocurrencies.
• Regulation & Licensing: Regulated by the SC in Malaysia.
• MYR Deposit Methods: Bank transfers and FPX payments.

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Is Crypto Regulated in Malaysia?

Cryptocurrency is recognized and regulated in Malaysia but is not considered legal tender. The Bank Negara Malaysia clearly states that cryptocurrencies like Bitcoin are not legal tender and advises caution due to associated risks. The country’s Finance Minister reinforces this position, expressing skepticism about digital assets as viable payment instruments or stores of value.‍

Malaysia's regulatory landscape for cryptocurrencies is overseen by the Securities Commission Malaysia (SC). Through the Capital Markets & Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019, the SC governs the trading, issuance, and safekeeping of digital assets. All exchanges in Malaysia must obtain licenses and comply with the rigorous guidelines set by the SC, which include standards for security and investor protection.

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How is Crypto Taxed in Malaysia?

In Malaysia, cryptocurrency transactions are generally tax-free due to the absence of capital gains tax. However, individuals actively trading cryptocurrencies or classified as day traders are subject to income tax. The Inland Revenue Board of Malaysia (LHDN) applies income tax rates ranging from 3% to 30% based on the taxpayer's income level. 

For tax calculation, day traders in Malaysia deduct the acquisition cost from the selling price to determine their taxable gains. Income tax is also levied on cryptocurrency payments based on their fair market value at the acquisition time. Expenses incurred exclusively for generating this income are deductible under Section 33(1) of the Income Tax Act, provided they are not excluded under Section 39. 

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How to Buy Bitcoin in Malaysia

If you're new to cryptocurrency investment in Malaysia, it's essential to know how to purchase Bitcoin through a local digital asset exchange. Follow this guide to get started:

1. Create an Account: Visit a reputable Malaysian exchange and sign up for an account. Complete the verification process by providing a photo ID and, if necessary, a selfie or proof of address.
2. Deposit Malaysian Ringgit (MYR): Navigate to the deposit section of your account, select MYR as your deposit currency, and enter the amount you want to transfer. Complete the transaction using a bank transfer, FPX payment, or credit card.
3. Choose Bitcoin: In the trading section, search for Bitcoin (BTC). Select the MYR/BTC trading pair to view the current market rate. Review the trading options, including market and limit orders.
4. Execute the Trade: Click 'buy' or 'trade' to purchase Bitcoin. Enter the amount of Bitcoin you want to buy or the MYR amount you're willing to spend. Review the order details, including price and fees, and execute the trade.

This guide clearly explains how users in Malaysia can begin trading digital currencies, covering every step from account setup to trade execution.

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Bottom Line

In conclusion, cryptocurrency adoption in Malaysia is growing, supported by the Securities Commission Malaysia (SC). Clear guidelines and investor protection measures have created a strong crypto ecosystem. To help new investors, we've identified the top five crypto exchanges in Malaysia: Bybit, Binance, Gate.io, Uphold, and Luno. Each platform offers unique features, services, and secure MYR deposit options, ensuring compliance with local regulations.