Although cryptocurrency transactions were not recognized until recently on the Malaysian market, this type of activity has increased in popularity. Businessmen who want to open a cryptocurrency company in Malaysia may operate through several types of virtual currencies, including the one which is the most popular across the world – Bitcoin. Our team of company formation representatives in Malaysia can offer in-depth assistance on the main usages of cryptocurrencies in this country and help you obtain a Labuan crypto exchange license.
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Types of crytocurrencies in Malaysia
If you want to open a cryptocurrency company in Malaysia, you can choose from several service providers, who offer transactions in several virtual coins. Malaysia offers two types of cryptocurrencies (which refer to virtual currencies that use cryptographic techniques), as follows:
- bitcoin – which is the standard type of virtual currency;
- altcoins – the term refers to alternative coins that can have a wide range of applications and they don’t include bitcoins.
One should note that a crypto exchange license in Malaysia is required before starting these kinds of operations. You can be guided by one of our specialists, so you can prepare the formalities.
Cryptocurrency transactions in Malaysia
The cryptocurrency industry is not yet regulated under the Malaysian legislation, but it is an accepted means of performing transactions and more and more investors have already shown their interest in investing in this sector, as an alternative manner of performing business activities, but it is important to know that the procedure of company registration in Malaysia is performed following the regulations provided under the applicable law. Investors can receive advice on the business forms available here from our team of company formation agents in Malaysia.
The most popular altcoins in Malaysia are:
- Ethereum;
- Litecoin;
- Ripple;
- Dogecoin.
Investors in Malaysia started performing financial activities using cryptocurrencies for the following reasons:
- investment opportunities;
- speed, affordability, and convenience;
- trading.
Although this business field has not yet been regulated under Malaysian legislation, companies operating in this industry are required to allow accounting and/or auditing entities to verify the activities of the respective businesses.
Are you interested in setting up a business in Malaysia? We recommend entrepreneurs get in touch with one of our specialists to be able to benefit from the support offered in this sense. We can manage the correct preparation of the necessary documents in this endeavor and we can also help you with opening a bank account. We are at your disposal with support for registration for the payment of taxes and obtaining the business license before starting the activities.
Obtaining the crypto exchange license in Malaysia
In order to open a cryptocurrency company in Malaysia, you need to apply for a crypto exchange license in Malaysia. You can also apply for a Labuan crypto exchange license if this is your future business destination in Malaysia. Below you will find some of the formalities that you must follow if you are going to open a cryptocurrency company in Malaysia and apply for a license:
- You must first set up a company. A limited liability company is an optimal solution for most businesses in Malaysia, including cryptocurrency companies.
- It is necessary to appoint a representative agent for opening a cryptocurrency company in Malaysia. She will have a number of responsibilities related to the company.
- Risk and operational management policies must be set before the implementation of virtual currency activities. One of our agents can help you.
- Next, one must open a bank account and deposit the required capital.
- The authorities provide applicants with a standard form. It must contain all the details about the cryptocurrency company in Malaysia.
- It is necessary to draw up a business plan and present it to the relevant authorities.
So, if you want to open a cryptocurrency company in Malaysia, you have to follow the above-mentioned formalities. These are related to obtaining a crypto exchange license in Malaysia or, as the case may be, a Labuan crypto exchange license. We mention that you can collaborate with our local agents in order to obtain the desired license faster.
Other essential conditions to open a cryptocurrency company in Malaysia
In addition to having a legal entity for virtual currency activities, you must also consider the internal business rules. It is also necessary to implement internal risk management policies, as well as security for customers. As in many other countries that accept virtual currency transactions, Malaysia also aligns with anti-money laundering regulations to prevent such fraud.
FAQ about cryptocurrency in Malaysia
Below are some questions about cryptocurrency activities in Malaysia that may be helpful when you open this type of business.
1. Are there residence conditions for setting up a cryptocurrency company in Malaysia?
There are no restrictions on the crypto exchange company because it can be registered anywhere in Malaysia.
2. Which authority oversees cryptocurrency activities in Malaysia?
The Malaysian Securities Commission is the authority that oversees the digital sectors and companies that offer virtual currency exchanges in Malaysia.
3. Is Bitcoin accepted in Malaysia?
Yes, Bitcoin is currently the most popular virtual currency in the world. Bitcoin transactions are accepted in Malaysia, along with other virtual currencies on the market.
4. Can custody services be provided in Malaysia?
Yes, those interested in virtual currency businesses can offer customers custody services such as security and storage of cryptocurrency in Malaysia.
5. Are there fees for a cryptocurrency exchange in Malaysia?
Yes, every company that implements cryptocurrency exchange services in Malaysia can set certain fees. These are required for various transactions.
Businessmen are invited to contact our team of consultants in company registration in Malaysia for further information referring to cryptocurrency businesses.