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Austin Jacob • May 13th, 2020

Buy Bitcoin In Malaysia (2020)

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How to Buy Bitcoin In Malaysia

You’re here to learn how to buy Bitcoin in Malaysia.

But…

Between all the different exchanges and options out there, you’re left confused.

For most of our readers, Luno is going to be your best option.

However…

As you’d expect, the best option for one, may not be the best for ALL people.

That’s where Bitpremier comes in.

After reading this guide, you’ll know the best Bitcoin exchange in Malaysia to make your first purchase!

Best Bitcoin Exchanges in Malaysia

ExchangeFeesLimits
Luno.5%-.1%300,000 MYR
Coinmama5%$20,000
LocalBitcoins1%None

Luno is one of the most popular Bitcoin and cryptocurrency exchanges, and for good reason. It allows for the buying and selling of Bitcoin and Ethereum against several fiat currencies including MYR (Malaysian Ringgit).

Luno's fees are extremely low compared to the competition, with a 0%-1% trading fee that scales based on trading volume.

The more you trade on Luno, the lower the fees. Out of all the exchanges that allow users to buy Bitcoin in Malaysia, Luno's are the cheapest.

Luno also has the highest limits available, when full account verification is achieved. After full verification, users are able to purchase 300,000 MYR worth of Bitcoin.

Overall, Luno is a reliable option for anyone trying to purchase cryptocurrency. Their user interface isn't as intuitive as some of the other options, but once you learn how to use it, it might just be the best option on this list.

Visit Luno Read Review
 

Coinmama is another beginner-friendly cryptocurrency brokerage that focuses on credit and debit card purchases. They offer instant delivery and sell Bitcoin, Ethereum, Ripple, Litecoin, and more to 46 US States, and most countries.

Coinmama doesn’t provide its users with a wallet on the exchange. Instead, users are asked to provide a wallet address to send the purchased cryptocurrency to. As long as you have your own wallet, this shouldn’t be an issue!

Coinmama charges a fee of around 5% for credit and debit purchases with instant delivery and high purchasing limits of a max of $5,000 daily, and $20,000 monthly. 

Visit Coinmama Read Review

 


Headquartered in London, UK, CEX.io offers security, high liquidity, and cross-platform trading. They support an extremely wide array of countries making them available to most people.

CEX.io appears to have little no fees at first glance. They are able to do this by charging a premium on the Bitcoin price. We estimate this comes in around a 7% premium on average.

When it comes to purchasing limits, it really depends on your accounts verification tier. The first level has daily deposits of $500 and $100 withdrawals while the highest tier has unlimited in each category. Payment methods include cards, bank transfers, and more.

Visit CEX.io Read Review

 


Changelly takes a different approach to the exchanging process. Instead of letting users store their cryptocurrency on their exchange, they set up conversion transactions. Users select an input and output currency and an amount.

In the above example, I selected .1 BTC and an opposing amount of ETH is automatically determined at the going rate. Then, Changelly provides an address to send the Bitcoin to and asks for an address to send their Ethereum to.

This effectively cuts out one step and swaps currencies in real-time. In exchange for their services, Changelly charges .5% on transactions. Fiat currencies such as the US Dollar and Euro can be used, but have slightly higher fees. Pretty cool!

Visit Changelly Read Review

 

Frequently Asked Questions

What is the best Bitcoin exchange in Malaysia?

While there is no exact “best” exchange, the exchange with the lowest fees is Luno.

Luno has 0%-1% trading fees depending on trading volume. Other exchanges have much higher fees or premiums, making them not optimal.

However, depending on which payment method you want to use, a different exchange other than Luno may be better.

What is the best Bitcoin exchange wallet in Malaysia?

Storing Bitcoin and other cryptocurrencies on an exchange for an extended period of time is never a good idea. This is because the exchange holds your private key.

Private keys are what ultimately prove ownership, so in the event of an exchange hack, you could lose your cryptocurrency.

To avoid this, consider getting a secure Bitcoin wallet. To learn more about Bitcoin wallets, check out our guide.

Is Bitcoin banned in Malaysia?

Nope! The Malaysian government has been pretty friendly towards Bitcoin and other cryptocurrencies so far.

In a recent ruling, the Malaysian government has said they have no intention to ban the trading of Bitcoin.

What App Can I Buy Bitcoin within Malaysia?

Luno is one of the best exchanges and has its own app allowing the buying, selling and trading of Bitcoin.

Luno’s app is aesthetically pleasing and makes it easy for you to trade Bitcoin on the go.

Of the exchanges mentioned above, they are the only one with an app for iOS and Android.

In addition to trading, the app also offers a wallet, however, it is not recommended to leave cryptocurrency on exchanges.

Luno is a trustworthy exchange and hasn’t had any security issues on the app.

As always, use two-factor authentication to add an extra line of defense to your accounts.

Which Malaysian Bitcoin exchange has the highest limits?

Luno has limits of over 300,000 MYR a month once full verification is done. 300,000 MYR is around $74,000 USD, while Coinmama’s monthly limits are $20,000.

Luno Malaysia Limits

Bitcoin in Malaysia

How Bitcoin Has Fared in Malaysia

As early as 2014 the Malaysian government was aware of the emerging technology.

Bank Negara of Malaysia, which is Malaysia’s Central Bank, released a statement to the public domain, warning its citizen that Bitcoin was not recognized as a legal tender in the country due to lack of regulation.

The Crypto Ban Controversy

Three years later, the country’s second Finance Minister revealed that the Malaysian government was not intending to enforce a ban on the trading of virtual currencies such as Bitcoin and Ethereum to mention but a few.

The second Financial Minister, Johari Abdul Ghani, further elaborated on this subject matter in an interview when he stated that the country’s central bank would not impose a ban on cryptocurrency.

Ghani put emphasis on the fact that it would be a draconian decision which might “curb innovation and creativity in the financial sector.”

He doused the speculations gaining grounds that the Malaysian government might ban cryptocurrency, stating that the government is only trying to establish “a balance between public interest and integrity of the financial system.”

The reason being that it was not the intention of the authorities to ban or put a stop to any innovation that is perceived to be beneficial to the public.

A Reversal of Policy

This reversal of policy seems to be a relief to traders of cryptocurrencies in Malaysia as it’s a complete shift in the stance after Bank Negara Malaysia (BNM) governor Muhammad bin Ibrahim refused to rule out a total ban on cryptocurrencies back in October 2017.

Reportedly, the Malaysia central bank issued draft regulations for public consultation in December where crypto exchanges were described as “reporting institution.”

Johari, while being embracive to cryptocurrencies, stated that the central bank was taking a cautious attempt and would be focusing on the “need to have proper regulation and supervision to ensure any risk associated with such schemes are effectively contained.”

It is an undeniable fact that the financial innovation in cryptocurrency technology can enhance the country’s economy in terms of productivity and financial intermediation, making it “more seamless,” as explained by Johari.

Johari went on to point out that the official will ensure that it includes cryptocurrencies and e-wallets as a “part and parcel” of the Malaysian digitization framework.

Malaysia has joined the Philippines in the list of countries amongst the fastest growing world economy to have a reversal of stance on cryptocurrency. 

Coming after Cryptocurrency Firms Using Tax Watchdog

According to the publication of The Law Library of Congress titled; Regulation of Cryptocurrency Around the World there are some anti-cryptocurrency policies brought up by the Malaysian government.

In January 2018, the Malaysian Inland Revenue Board (IRB) froze the Malaysian account of a UK-based cryptocurrency trading platform.

Also, the publication stated that the freezing of account was for auditing purpose and to determine whether or not they have complied with the Income Tax Act 1967 which requires tax to be remitted on the income of any person earned in Malaysia.

The Public Decides Future of Bitcoin in Malaysia

The head of Malaysia Central bank has categorically stated that the fate of virtual currencies in the country depends on the public adoption, as the apex bank also added that it would neither ban nor recognize virtual currency.

The governor of Bank Negara government, Muhammad Ibrahim, while giving a speech at the 40th- anniversary dinner of the Harvard Business School Alumni Club of Malaysia this month highlighted some salient point about the future of virtual currencies like Bitcoin in the Malaysian economy.

Ibrahim was quoted saying;

We’ll let the cryptocurrency promoters including Bitcoin, Ethereum and Ripple to be more transparent, the methods to be more transparent and people behind the scene are to be more transparent too.

The governor of the apex bank in the country didn’t leave any stone untouched as he stressed that the authority wouldn’t recognize cryptocurrency as fiat currency and also balancing the information that there is no such thing as banning cryptocurrency in the country.

Bitcoin, as well as other cryptocurrencies, have gone through several phases in Malaysia.

From being at the level at which the central bank, the most influential regulatory body of the financial sector, denied its presence to the phase of stringent regulation to the stage where the apex bank started to reason with its citizens to give the cryptocurrency a chance.

After all of this, the crypto community in Malaysia should only be optimistic for an enabling environment.

Conclusion

As seen above, buying Bitcoin in Malaysia is very easy to do! Depending on your circumstances, different exchanges will be better than others. Overall, [eafl id=”1967″ name=”Luno” text=”Luno”] is a beginner friendly exchange that has extremely low fees to its competitors.

Similarly to other countries, the Malaysian government has been pretty quiet about the status of Bitcoin in the country. They have said that the currency is not legal tender, but this is obvious to many.

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