Buy Bitcoin In Malaysia

For users based in Malaysia, there are several exchanges that you can use to purchase Bitcoin. After reading this guide, you’ll be able to choose the best Bitcoin exchange in Malaysia to make your first Bitcoin purchase! Below, we will compare and contrast the following Bitcoin exchanges.

ExchangeFeesLimits
Luno.5%-.1%300,000 MYR
Coinmama5%$20,000
Cex.io7%$3,000
LocalBitcoins1%None

Luno

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

Luno’s fees are fantastic, with a .5%-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.

Coinmama

Coinmama Review

Coinmama is also extremely popular, as it serves almost countries in the world including Malaysia. In addition to Bitcoin, Coinmama allows for the purchase of several altcoins such as Ethereum, Litecoin, and Ripple.

One thing that is different about Coinmama is that it never holds funds for the user. Instead, users place buy orders and have the cryptocurrency sent directly to their wallet.

For fees, Coinmama’s are around 5% on credit and debit card purchases.

CEX.io

CEX.io is another popular option allowing for credit card, debit card, and some bank purchases. In addition to fiat currencies, they also offer the trading of cryptocurrencies.

While CEX.io’s fees appear to be low, they have high premiums on the price of each currency. A premium is when the price is listed higher than the going rate.

Other than the somewhat prices, CEX.io is a fantastic option for the purchase of Bitcoin.

Changelly

Changelly

Changelly operates differently than most other exchanges. Changelly removes a step from the cryptocurrency transaction process by allowing the users to swap currencies in one step.

On Changelly, users select an input and output currency. After, send the input currency to the designated address, and automatically receive your output currency a few minutes later.

Changelly’s fees vary depending on if fiat or cryptocurrencies are exchanged. For cryptocurrency exchanges, the fees are .5%, while fiat currencies have around 5% fees.

Virwox

Virwox Exchange Malaysia

Virwox is an interesting exchange. It is one of the few that allows users to buy Bitcoin with Paypal! The fees associated with this method are on the higher end, but is an interesting alternative.

Virwox is a virtual exchange created for the exchanging of video game currencies. One of the currencies Second Life Lindens (SLL). Due to cryptocurrencies having irreversible transactions, Paypal and crypto don’t get along.

With Virwox, users can first convert their Paypal balance into SLL, and then into Bitcoin.

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 .5%-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 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 their 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, in the history of Cryptocurrency in Malaysia, the government was not unaware of the emerging sector. As a matter of fact, the Bank Negara 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 on a mission to enforce a blanket ban on the trading of virtual currencies such as Bitcoin, 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 laying 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 like Bitcoin in Malaysia as it is 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, 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 embedded in the crypto bedrock technology can enhance the country’s economy in terms of productivity and financial intermediation, making it “more seamless,” as explained by Johari.

He pointed 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 stands from a stringent standpoint to a more open and even embracive approach to the crypto ecosystem; explained the deputy director of the Bangko Sentral ng Pilipinas (BSP) while speaking of the convenience of using Bitcoin as an acceptable payment option.

Coming after Cryptocurrency Firms Using Tax Watchdog

According to the publication of The Law Library of Congress titled; “Regulation of Cryptocurrency Around the World” some anti-cryptocurrency policies of 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;

Basically, we will 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 did not leave any stone untouched as he stressed that the authority would not recognize cryptocurrency as fiat currency and also balancing the information that there is no such thing as banning cryptocurrency in the country.

The Bitcoin, as well as other cryptocurrency market in Malaysia, has gone through several phases, from the level at which the central bank, which is a 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. On this note, the crypto community in Malaysia could 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, 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.