How to Buy Bitcoin in Malaysia – A Quick Guide

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Updated: 22 October 2020

Bitcoin, a digital currency introduced in 2009 by a mysterious organization or individual known as Satoshi Nakamoto is now attracting investors and individuals in Malaysia. Reportedly, the number of Bitcoin trading in this country has increased rapidly.

Many people turn to Bitcoin as they love the idea of its decentralization. This means that Bitcoin is not controlled by any individual or organization. Thus, it is harder or even impossible for any entity to try and manipulate the value of Bitcoin.

Besides, with blockchain technology, transactions with Bitcoin are secure, unalterable, and private.

So, the next question to ask is, where can we purchase Bitcoin in Malaysia?

Where Can You Buy Bitcoin in Malaysia?

Basically, there are three ways to buy Bitcoin.

  1. Licensed Cryptocurrency Exchanges
  2. Peer-to-peer (P2P) Platforms
  3. Bitcoin ATMs

 

Licensed Cryptocurrency Exchanges

Cryptocurrency exchanges, also known as Digital Asset Exchanges (DAX) are platforms where you can trade your Malaysian Ringgit (RM) into cryptocurrencies.

As of 2019, Malaysia’s Security Commission (SC) has approved three cryptocurrency exchanges, namely Luno Malaysia, SINEGY Technologies, and Tokenize Technology. They have been given SC’s approval to operate in Malaysia and are the only registered digital asset exchanges that are able to do so at the moment.

And as of right now, Bitcoin exchanges in Malaysia are allowed to trade only Bitcoin, Ethereum, and XRP.

Bitcoin exchanges in Malaysia

Luno

With its headquarter in South Africa, Luno is by far the most popular DAX in Malaysia which has served over 3 million users from more than 40 countries.

Founded in 2013 by 4 co-founders namely Marcus Swanepoel, Timothy Stranex, Pieter Heyns, and Carel van Wyk. The cryptocurrency exchange was the first to receive full approval by SC Malaysia.

Cryptocurrencies supported: Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH)
Trading Fee: Maker: Free, Taker: 0.15% to 1.0%
Deposit Fee: Free
Withdrawal Fee: RM0.10

Buy Bitcoin in Malaysia

Sinegy

Founded in June 2017, Sinegy is fully local and is based in Penang. Sinegy is a second operator to announce that it has received full approval from the regulators to operate a crypto exchange in Malaysia.

Cryptocurrencies supported: Bitcoin (BTC), Ether (ETH), Ripple (XRP)
Trading Fee: Maker: -0.25% (fee rebate), Taker: -0.003% to 0.5%
Deposit Fee: Free
Withdrawal Fee: RM0.10

Purchase Bitcoin

Tokenize Exchange

Also founded in 2017, Tokenize Exchange is a Singapore-based exchange that facilitates the buying and selling of over 30 digital currencies. It has recently obtained full approval from the Malaysia SC to operate as a digital asset exchange.

Cryptocurrencies supported: Bitcoin (BTC), Ether (ETH), Ripple (XRP)
Trading Fee: Regular User: Fiat-Crypto: 1.00% ,Crypto-Crypto: 0.25% , Premium User: Fiat-Crypto: 0.50% , Crypto-Crypto: 0.20%
Deposit Fee: Free
Withdrawal Fee: Fiat: Free; Crypto Normal / Verified: *0.5% , Premium: *0.2% , Platinum: *0.1%

Peer-To-Peer (p2p) Platforms

Besides digital asset exchanges (DAX) listed above, there are also other P2P platforms available for you to buy Bitcoin in Malaysia. P2P or decentralized exchanges are operated and maintained exclusively by software.

P2P exchanges allow the participants of the market to trade directly with each other without any trusted third party to process all trades. Among famous P2P exchanges are Binance, Etoro, and Remitano.

However, these platforms are no longer considered legal in Malaysia. Also, there are many incidents of fraud that happened through these kinds of platforms.

Thus, it is important to be mindful should you wish to proceed to buy Bitcoin through these exchanges.

Bitcoin ATM Malaysia

Bitcoin ATMs

Bitcoin ATM (Automated Teller Machine) is a kiosk that enables users to buy Bitcoin using cash or debit card. Unlike cryptocurrency exchanges, Bitcoin ATMs do not require any verification process and your transaction can be carried out quickly.

However, there is a limited number of Bitcoin ATMs available in Malaysia. Also, transaction fees through kiosks are relatively higher compared to DAX exchange rates. Some of the Bitcoin ATMs charge up to 10% fee thus making it unsuitable for large transactions.

Conclusion

Basically, there are only three digital asset exchanges (DAX) available to buy Bitcoin in Malaysia. These three platforms are regulated and have already received full approval from the Malaysian government.

Although there are many other online platforms and other P2P platforms available, they are no longer legal and safe to purchase cryptocurrencies from. Thus, Malaysians who are keen to start buying digital currency are advised to do it at a regulated platform.

Bitcoin is indeed the world’s most famous and used digital currency, thus that makes it actively associated with fraud and scammers. So, remember to prepare yourselves with the right educational tools and trading tips before you start buying and trading Bitcoin.

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