What are Foreign Exchange Notices (FEN)?
Central Bank of Malaysia (BNM) issued the Foreign Exchange Policy Notice 3, Investment in Foreign Currency Asset which recognises the investment in foreign currency asset.
FEN declarations apply to:
- Individuals – who is a citizen and/or resident in Malaysia.
- Corporations – which being incorporated in Malaysia.
This means that when you are sending your cryptocurrency, you are required to declare the status of your Domestic Ringgit Borrowing (“DRB”). And if you do have DRB, the value limit when sending cryptocurrency to a foreign crypto exchange or private wallet will apply to you.
What is Domestic Ringgit Borrowing (DRB)?
Domestic Ringgit Borrowing refers to any borrowing in Ringgit obtained by a resident from another resident, or entity within Malaysia. This excludes one home loan and/or one vehicle loan. Meaning, if you have;
- More than one home loan,
- Or more than one vehicle loan,
- Or a personal loan (excluding credit card),
- Or any corporate loans/debts
You have DRB and the investment limits in foreign currency asset will be applicable to you.
How do I know whether the limits apply to me?
The annual limit applies to you if you are;
- Resident and/or citizen of Malaysia
- Have borrowings in Ringgit from Malaysian entity (This excludes one home loan, and/or one vehicle loan or any amount of credit cards)
- Sending crypto to a wallet address that is not hosted by a registered Malaysian Digital Asset Exchange
What is the investment limit if I have DRB?
For resident individuals (including sole proprietorships or general partnerships) with DRB, the limit is RM1 million per calendar year. For other businesses or legal entities, the annual limit is RM50 million.
What happen if I exceed the limit?
MX will notify you when you have reached your investment limit, crypto send to foreign exchanges and private wallet will be disabled. You will need to provide us with the approval letter from BNM in order to extend your investment send value. The limit will reset on 1st January each year.
How do I get the approval from BNM?
In order to get the approval, you will need to contact BNM and apply to increase your limit of investment in foreign currency asset. You can find the portal for you apply for the approval here.
Once you have obtained the approval letter from BNM, you may contact our Customer Support team to furnished us with the said approval letter.