Quick Guide to buying and selling cryptocurrencies in Malaysia

  • Contributor

    I was recently researching on exchanges for buying and selling crypto currencies in malaysia. Sharing here so we can all benefit.

    4 main platforms,

    • Luno - BTC and ETH
    • Remitano - BTC and ETH
    • Localbitcoins - only BTC
    • Xbit Asia - only BTC

    This Singaporean app is probably the most trusted Bitcoin platforms in Malaysia, and for good reason. Deposits are free, and withdrawal fees range from 0% to 1%. You’ll get your cryptocurrency pretty fast after making a purchase too.

    • Online cryptocurrency exchange, LUNO supports both BTC and ETH.
    • Has a much higher liquidity, and subsequently there is a smaller buy/sell spread.
    • LUNO has been gaining popularity in recent months as they are able to process fiat deposits even on weekends, whereas XBit Asia only processes deposits during regular office hours. If you deposit MYR using Instant Interbank Transfer from Maybank (and have filled in all the fields correctly), you should typically see your LUNO account credited within 15 - 30 minutes.
    • They had an issue with their bank account recently, as a result were unable to process bank deposits/withdrawals. They are actively working to resolve those. You can monitor the status here https://luno.statuspage.io/incidents/lzzrvb1mq51y

    XBit Asia exchange
    It seems like XBit Asia was built specifically for Malaysia, as it only trades Malaysian Ringgit with Bitcoin. It is said to be one of Malaysia’s leading Bitcoin tradings sites. XBit Asia charges a 0.8% trading fee.
    Their new user registration is closed at the time of writing this article.

    • Online cryptocurrency exchange, only supports BTC
    • XBit Asia is a bit different from abovementioned peer-to-peer platforms, as you need to first transfer money directly into your "account" in XBit Asia before you can buy BTC.
    • Transfer of money is not instantaneous. You need to bank-in your money to XBit Asia's designated bank account and then email them the evidence. Once the staff confirms your bank-in, it will be made available in your "account" and you can then buy BTC. Confirmation can be quite fast but only occur during working hours and working days.
    • The disadvantage of XBit Asia is that there are not many buyers/sellers, hence the liquidity is low, leading to larger buy/sell spread prices.
    • Your BTC is kept in the website's BTC wallet.
    • When you sell your bitcoins, the proceeds are credited into your account in XBit Asia, which you can then withdraw, and the funds will transferred to your Malaysian bank account via GIRO. Withdrawals are processed 3 times a day, on working days only.

    LocalBitcoins is one of the biggest peer-to-peer Bitcoin trading sites online, which means that you’ll need to be careful of a user’s reputation (marked with a Feedback Score) before trading with them. Transactions that go through the platform are run through its Escrow system to protect both parties. It charges a 1% fee on all transactions.

    • Peer-to-peer exchange (P2P) where the website serves as a platform for you to deal directly with a seller (or buyer)
    • Since you are dealing with a stranger, it is very important to :
      a) Deal with verified trader who has very good reputation/feedbacks and has done many deals. You can check their profile by clicking on their ID.
      b) Ensure they are online
      c) Read the traders terms & conditions before you trade
      d) Ensure you can do instant bank transfer especially for different banks. If possible, it is preferable to use the same bank to avoid delays.
    • the good thing about Localbitcoins is that you can send messages (and pictures if needed) during your trade. Say you want to buy 1.0 BTC, you click the "Buy" button, indicate the amount you want to buy, and type the message. I usually type something like "Wanna buy BTC. Can proceed?" and wait for them to respond.
    • once you have transferred the money, you have to click on the "I have paid the seller" button. The seller will be automatically notified and will release the BTC when he confirms the money is in his bank account. You must NEVER accidentally press the "Cancel trade" button when you have already transferred the money or you will lose your hard-earned cash!!! The "Cancel trade" button is only used when you really want to cancel the trade and have not transferred any money.
    • for safety purposes, once you initiate a trade, the BTC is kept in escrow (kept by the website) until the trade is complete. In the event that there are problems with the trade, the BTC will be held until the issue is resolved.
    • your BTC is kept in the websites BTC wallet

    Remitano works on a decentralised peer-to-peer system using Escrow for user protection. So again, checking a user’s reputation is key here. It also charges a 1% fee for all transactions.

    • P2P exchange that supports both BTC and ETH
    • operates similarly to Localbitcoins except you can't communicate with the seller
    • your BTC is also kept in the website's BTC wallet.

    Do note that due to the lower liquidity in Malaysia, cryptocurrency prices on these websites are often a few percentages higher compared to the average global prices. But you can sometimes get a good price if the seller is desperate to sell. In order to get the best BTC or ETH price, it is recommended that you check out the prices on all 4 exchanges mentioned above.

    Using MYR, there are limited options to buying and selling bitcoins (BTC). Unfortunately, at the moment, it is only possible to buy and sell BTC and ETH directly with MYR; all other cryptocurrencies can only be bought and sold by converting through either BTC or ETH first.

    Will share more on altcoins if people are interested to know.


  • Thanks. Quite helpful.
    Is there any Malaysian based ICO or token sale recently? Wonder what the market sentiment on ICO's is.

  • Thanks a lot for sharing the above information. Very useful for newbies like me.
    Are any of the above exchanges secured by any kind of government entity? What happens in the case of an exchange shutting down? will I be able to transfer my coins and any balance remaining to another exchange or wallet?

  • Opened an account with Luno last year when Bitcoin was USD4k, not managed to go it as was busy that time, now the account with Luno also already being frozen.

  • Contributor

    @khoo-chuyi nope. no government security or regulation yet for cryptos. But we might start seeing more government involvement soon. see these

    @Loh luno's status page says they are working on a quick solution. But Iam skeptical.
    do you have any idea why their account was frozen in the first place?

  • @jonhan Any entrepreneur like myself will know that the government in this country will always be wanting some of your profit you gained, and some time they want more share than you (like the GST 6% when some items our earning is less than that). Any investment or business you do without them getting any benefits, they will come to you once they know about it. Applying the same principle to Crypto trading and you will understand why.

    Luno will need to come up a mechanism so that their customers' earning from the Crypto trading can be recorded and customers will have to declare for tax purposes, then only they are allowed to continue business.

  • @Loh well said. It won't be long before the government starts taking a cut from your gains.

    Luno will need to come up a mechanism so that their customers' earning from the Crypto trading can be recorded and customers will have to declare for tax purposes, then only they are allowed to continue business.

    Although, none of the other exchanges do the above mentioned recording and tax filing. Why is Luno being targeted? Or are the other exchanges already doing so?

  • Contributor

    @Rajni123 Luno is a london based exchange. They don't reveal their malaysian user base details to the government. IRB has requested that luno provide them with information on their Malaysian customers: identification, deposits/withdrawals, and transactions. But Luno's customer base might not be okay if they do so. Curious to see how things might play out in the future.

  • @jonhan is it safe to use Luno? assuming they get their operations up and running again?

  • on a side note, NEO is rising in price

  • @Rajni123 weeks back I received notification from Luno that my account already reactivated back and ready for bitcoin and ethereum trade.

  • Funding Societies

    Yeah. They have enabled trading in BTC, ETH. But they are still not able to process withdrawals and deposits though.

  • @Loh wow, I didn't receive any such email. are you a high net worth investor in luno? looks like they reactivated accounts based on some criteria.

  • Contributor

    BNM released policy regarding digital currency. http://www.bnm.gov.my/index.php?ch=57&pg=538&ac=680&bb=file


    1. Exchanges need make sure to practice AML/KYC.
    2. Trade crypto at your own risk.
    3. Crypto is not legal tender.

  • Contributor

  • @jonhan

    I need to know the step and how, first my ETH in bittrex, how to sell it, and second my blockchain bitcoin how to exchange it to RM?

  • Community Manager

    @tingwk said in Quick Guide to buying and selling cryptocurrencies in Malaysia:


    I need to know the step and how, first my ETH in bittrex, how to sell it, and second my blockchain bitcoin how to exchange it to RM?

    Perhaps @limjimmy @cybreed @vector-b would have some helpful input on this as well?

  • @tingwk

    You can sell your crypto-currencies in exchange to MYR via a Coinut or a Tokenize Exchange account, and then withdraw MYR.


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