Malaysian Tax Officials has frozen Luno Exchange Bank Account

Nishanth Shetty

Nishanth Shetty

January 16, 2018 7:35 am

Malaysian Tax Officials has frozen Luno Exchange Bank Account | Coindelite News
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Malaysian Tax Officials has frozen Luno Exchange Bank Account

From past few weeks, the regulators and financial institutions have been reacting to the worldwide popularity of bitcoin and other cryptocurrencies. This week in Kuala Lumpur, Malaysia, the trading platform Luno had its bank account frozen by the country’s tax officials.

Luno highlighted the Company is “Working Closely With the IRB to Limit the Parameters of the Broad Request”

The exchange and wallet provider Luno declared it is having issues with the Malaysian tax authorities. Luno was introduced in 2013, the London-based business Luno provides bitcoin and Ethereum to countries like Nigeria, South Africa, Malaysia, Indonesia, the UK, and 35 other Europian regions as well. Malaysia’s Inland Revenue Board (IRB) froze the firm’s Malaysian bank account on January 13, an account which was held under its local business name ‘Bitx Malaysia.’

Luno described:

“As part of this, IRB has requested that we provide them with information on all our Malaysian customers: identification, deposits/withdrawals, and transactions, We are working closely with the IRB to limit the parameters of this broad request.”

Luno said Malaysian Customers to Follow Tax Requirements

Meanwhile, Malaysia based Luno customers can still trade bitcoin and Ethereum using the national tender the MYR. The company noted, “All your funds — local and digital currencies — remain safe with Luno and all other services remain unaffected.” The trading platform Luno also says its Malaysian customer base that they should pay their taxes. Luno describes they are working closely with the banks in the area and the IRB to resolve the situation as fast as possible.

Luno told:

“Navigating this requires everyone to work together to figure out optimal solutions to ensure the industry is safe and conducive to business — We are supportive of the recent measures by Bank Negara Malaysia to come up with reporting requirements for digital currency exchanges. As set out in our privacy policy, we value our customers’ privacy and strive to protect your personal information. We will only provide personal information where we are legally required to do so and are working with our local advisers to ensure that any disclosure is consistent with our obligations to you, our customers.”

Bank Negara Malaysia Has created Strict KYC/AML Measures on Country’s Digital Currency Exchanges

The recent problem in Malaysia with the Luno exchange is followed by the Bank Negara Malaysia (BNM), the country’s central bank, publishing drafted digital currency regulatory guidelines for citizens and businesses residing in the region. The BNM had put the proposals up for public review, and Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines are highlighted. “A digital currency exchanger must declare its details,” BNM told in December 2017. “The public is reminded that digital currencies are not legal tender in Malaysia.” the central bank said. The trading platform Luno, which commands quite a bit of Malaysian cryptocurrency volume, seems to be the first victim of the central bank’s involvement.

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