What is foreign exchange information and why does Luno need it?

Does this apply to me?

Only if your Luno account is verified in Malaysia.

Sending cryptocurrency out of Malaysia is now officially seen as an investment in foreign currency assets, per the Central Bank of Malaysia’s Foreign Exchange Policy. This policy is part of a broad prudential toolkit to maintain monetary and financial stability in the country. It applies to both citizens and permanent residents of Malaysia.

Since Luno is registered as a Digital Asset Exchange in Malaysia, we comply with the Foreign Exchange Policy.

What does the Foreign Exchange Policy mean for me?

If you have Domestic Ringgit Borrowing in Malaysia, then you’ll have an annual limit on the amount of money you can send to non-Malaysian exchanges.

Wait, what's Domestic Ringgit Borrowing?

Domestic Ringgit Borrowing, or DRB, refers to any borrowing in Ringgit by a resident from another resident or entity within Malaysia. This excludes one home loan and/or one vehicle loan. In short, you have DRB if you have:

  • More than one home loan,

  • Or more than one vehicle loan,

  • Or a personal loan (excluding credit cards),

  • Or any corporate loans/debts

If you meet any of the above criteria, you’ll need to declare that you do have DRB before you send crypto.

If I have DRB, how much can I send per year?

If you’re sending crypto to anywhere other than a regulated Malaysian exchange, then there’s an annual limit on the amount you can send.

For resident individuals (including sole proprietorships or general partnerships) with DRB, the limit is RM 1 million per calendar year. For other businesses or legal entities, that annual limit is RM 50 million.

If you’re a market maker, your limit will be based on the net outflow of crypto: the amount of crypto sent to a foreign exchange minus the amount of crypto received from a foreign exchange. For example, if a corporate market maker (with a limit of RM 50 million) sends RM 10 million worth of crypto and receives RM 5 million, their remaining limit balance will be RM 45 million.

If this limit is exceeded, you’ll need to apply for special approval from the Central Bank of Malaysia before you can send any more crypto to non-Malaysian exchanges this year.

Note

This limit doesn’t only apply to your activities on Luno, but to all foreign currency investments. We can only calculate your remaining limit based on your Luno transactions. When you declare whether you’ve exceeded your limit, please also keep in mind any other foreign currency investments you might have elsewhere.


Frequently asked questions

Ask yourself the following questions:

  • Are you a resident/citizen of Malaysia?

  • Have you loaned money from a Malaysian entity? (This excludes one home loan, and/or one vehicle loan or any amount of credit cards)

  • Are you sending crypto to a wallet address that isn’t hosted by a registered Malaysian Digital Asset Exchange? See listed Registered Exchanges

If you answered YES to all of the above, then the annual limit applies to you.

Luno will notify you when you’ve reached your limit and crypto sends will be disabled. You’ll need to provide Luno with an approval letter from the Central Bank of Malaysia extending your limit. The limit resets on the 1st of January each year.

Tip

Read more about what you should if you've reached your foreign exchange limit.

No, the limit only applies to sending cryptocurrency.

If you’re sending crypto to a private wallet not hosted by a registered Digital Asset Exchange (DAX) in Malaysia, then the annual limit applies. Sending crypto to a non-registered DAX or a private wallet is considered an offshore send.

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