Crypto license in Malaysia

The Securities Commission Malaysia (SC) and Bank Negara Malaysia (BNM) are key regulators for those looking to operate cryptocurrency activities in Malaysia. Malaysia offers a regulated and transparent licensing process that encourages investment and ensures compliance with global standards. 

Let’s get deep into advantages, requirements, stages, timeframe, and costs associated with obtaining a cryptocurrency license in Malaysia.

Top 4 Advantages of Malaysian Cryptocurrency License

• • Strategic Location: Malaysia’s strategic location within the ASEAN region makes it an attractive hub for cryptocurrency trading, providing access to a large and diverse market.
  • Tax Benefits: Licensed crypto companies in Malaysia may benefit from favorable tax regulations, reducing operational costs and enhancing profitability.
  • Robust Legal Support: Malaysia’s strong legal framework supports fair and secure crypto operations, ensuring a stable environment for businesses and investors.
  • Enhanced Reputation: A Malaysian crypto license enhances a company’s credibility internationally, attracting global investors and partners.

What are the Key Requirements for Obtaining Malaysian Crypto License?

• Resident company formation in Malaysia
• Fit & proper check of all participants
• Appointment of a responsible person (must be either CEO, CFO or COO of the company)
• Establishment of strong internal audit procedures
• Draft of risk management matrixes, procedures and rules
• Minimum share capital (paid up) of 5.000.000 MYR (about 1.050.000 USD)
• Systems to surveil transactions and market activity on the platform
• Hold constant liquidity for solvability of customers assets
• Protection of customer assets and data
• AML-CFT process and policies compliant with the FATF guidelines
• Only offer cryptocurrencies that have been approved by the Securities Commission

3 Stages for Obtaining a Cryptocurrency License in Malaysia

• Incorporation of a Resident Company (3 weeks): Applicants must establish a resident company in Malaysia, complying with local regulations.
• Application Preparation (3 months): Prepare thoroughly by appointing a responsible person, developing compliance policies, ensuring financial solvency, implementing risk management systems, and setting up internal audits. Protecting customer assets and data, along with platform cybersecurity, is crucial.
• Submitting to the Securities Commission (18 months): Submit the application to the Securities Commission of Malaysia after meeting all requirements. Be prepared for a thorough review, including interviews and additional information requests, to demonstrate the board’s expertise and professionalism.

So typically, a cryptocurrency license application takes up to 2 years. Mind that efficient organization and readiness can streamline this period considerably.

What are the Maintenance Costs of Obtaining a Cryptocurrency License?

If you are a capital markets services (CMS) licence holder, the annual license fee payable is

• for any first regulated activity, RM2,000; and
• for any subsequent additional regulated activity, RM1,000 each.
  

If you carry on more than one regulated activity, the license fees payable will be the aggregate amount.

Ongoing costs for maintaining compliance with regulatory requirements can vary depending on the complexity of the business and the specific requirements set by the authorities.

Conclusion

Securing a cryptocurrency license in Malaysia offers businesses significant strategic benefits, including operational cost reductions and access to a broad international market. The detailed application process ensures that only compliant and capable operators are allowed to participate in this lucrative industry.

For expert guidance on obtaining a cryptocurrency license in Malaysia, consult with SBSB’s legal specialists. We have been specializing in FinTech, Crypto, and Gambling projects since 2013, providing tailor-made solutions for each client, taking into account the company’s business model. 

We will help you choose the most appropriate type of license and prepare the necessary documents to legalize your cryptocurrency business in accordance with the law, providing full legal support. 

Contact SBSB today to streamline your journey to becoming a licensed crypto operator in Malaysia.