The “Ops Token” operation involved the IRB accessing cryptocurrency trading data stored on mobile devices and computers, with the aim of tracing digital assets traded and evaluating associated profits. Instances were uncovered where entities were established solely for cryptocurrency transactions to evade tax obligations. The tax authority has clarified that the gathered data will undergo detailed analysis to determine the value of cryptocurrency assets traded and the profits generated. This aims to uncover the extent of previously undisclosed tax evasion to the IRB.
CEO Datuk Dr Abu Tariq Jamaluddin emphasized that individuals engaged in cryptocurrency trading in Malaysia must comply with income tax regulations. He urged all parties involved in such activities to promptly declare their taxes at the nearest IRB office to avoid potential compliance penalties. The operation aims to increase the nation’s revenue by reducing tax evasion and improving tax efficiency, which will in turn strengthen Malaysia’s revenue collection efforts. This event triggered regulatory crackdowns and heightened scrutiny, emphasizing the need for transparency and robust financial practices within the cryptocurrency sector.
[Have a confidential tip for our reporters? The arrest followed a demand for a $150 million payment in crypto, which Gambaryan interpreted as an extortion attempt.]