Does this apply to me?
Only if your Luno account is verified in Malaysia.
Under the Central Bank of Malaysia’s Foreign Exchange Policy (FEP), sending cryptocurrency to a non-Malaysian registered exchange (foreign exchange) or private wallet is treated as an investment in foreign currency assets. The FEP is part of a broad prudential toolkit to maintain monetary and financial stability in the country. It applies to both Malaysian citizens and permanent residents.
Since Luno is registered as a Digital Asset Exchange in Malaysia, we comply with the Foreign Exchange Policy.
What information may Luno request?
We may ask about:
- Your employment status
- The source of your funds
- Whether you have any Domestic Ringgit Borrowing (DRB)
What does the Foreign Exchange Policy mean for me?
If you have Domestic Ringgit Borrowing (DRB) in Malaysia, then you are subject to an annual limit on the amount of money you can send to foreign exchanges or private wallets.
What is Domestic Ringgit Borrowing?
Domestic Ringgit Borrowing(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.
Declaring DRB affects your annual send limit in the following ways:
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- If you declare No to DRB, no limits apply.
- If you declare Yes to DRB, annual limits apply.
Keep in mind
Once you declare DRB in a calendar year, the applicable limit is enforced across all your foreign sends made in that year. This means that your DRB status applies retroactively to earlier transactions within the same year. This can make it seem like your available limit has suddenly reduced.
Why does Luno collect this?
This is a mandatory regulatory requirement under the Foreign Exchange Policy Notices from the Central Bank of Malaysia and the Securities Commission Malaysia (SC). As a regulated exchange in Malaysia, Luno must ensure that all its customers comply with these requirements.
If I have DRB, how much can I send per year?
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 per calendar year.
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 annual limit is exceeded, you must obtain prior approval from the Central Bank of Malaysia before performing any further foreign sends. Without the approval letter, Luno will not be able to process further foreign sends.
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.