Since the inception of Bitcoin, people are riding on a wave of Blockchain technology trends which has paved the ways for regulations and restrictions by authoritative.
Luno bank account has been suspended by Inland Revenue Board (IRB), pending a tax investigation on its users. Also, a report from Edge Market states that the Luno bank account which has been held under the name of BitX Malaysia was not processing cash deposits or withdrawals during last weeks.
The platform addressed that it is “working closely with the IRB to Limit the Parameters of the Board request”. In a statement, Luno wrote that the IRB is looking over the information of its Malaysian customers. Details including their identity, transaction details along with deposits/withdrawals. Further, the tax authority respects its customer’s privacy upon providing their details.
A news outlet reads it as follows
“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,”
However, the Luno trading platform stimulates Malaysian customers to abide by Tax requirement. It further encourages them to divulge all information as required by the agency’s reporting crew.
Despite, an inquiry by tax authorities, Luno assures the safe trading of Bitcoin and Ethereum through MYR. These measures are specifically for its Malaysia based Luno customers. It also emphasizes that no other service of Luo will be affected while running an interrogation.
Malaysian customers may ask to pay the own taxes and encourage everyone to co-operate with the same.
“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,” Luno states.
The country’s central bank “Bank Negara Malaysia” is drafting the regulations for its citizens and businesses with regards to cryptocurrency. It points out KYC and AML guidelines, to be followed by crypto exchange platform for customers residing in the regions.
The central Bank addressed “The public is reminded that digital currencies are not legal tender in Malaysia,”
In late 2017, the platform has announced of upgrading account verification which contains three-tier limits for deposit and withdrawals to increase the limit. Following the verification time upgradation, Luno has set up an office in Kuala Lumpur. Moreover, Luno’s move in Kuala intends to get the most out of cryptocurrency growth.
Also Read: Australian Tax Office Enforces Tax On Cryptocurrency
Source of the article: https://coinpedia.org/news/malaysian-tax-officials-freezes-luno-bank-account
