To
curb
tax
evasion
within
the
cryptocurrency
sector,
the
Malaysian
Inland
Revenue
Board
(IRB)
has

initiated
a
special
operation
named
“Ops
Token.”

This
campaign,
conducted
with
the
assistance
of
the
Royal
Malaysia
Police
and
CyberSecurity
Malaysia,
targeted
several
business
entities
across
the
Klang
Valley
suspected
of
underreporting
their

cryptocurrency
transactions.

Details
Of
The
‘Ops
Token’
Initiative

As
reported
by
a
Local
media
outlet,
The
Malaysian
Reserve,
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.

 

Notably,
the
“Ops
Token”
reflects
the
Malaysian
government’s
efforts
to
tighten

tax
compliance
among
cryptocurrency
traders
and
business
entities.

According
to
The
Malaysian
Reserve
report,
the
data
collected
during
these
raids
revealed
significant
non-compliance,
with
many
entities
failing
to
declare
their
cryptocurrency
transactions
adequately.
The
IRB
noted:

The
data
obtained
will
be
analysed
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
delcared
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.

Global
Crypto
Tax
Strategies:
A
Series
Of
Divergent
Approaches

Notably,
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,
as
reported
by
Bitcoinist
citing
Reuters.

 

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.”

Featured
image
created
with
DALL-E,
Chart
from
Tradingview

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Author: Samuel Edyme

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