In a landmark announcement, the Securities Commission Malaysia’s Shariah Advisory Council declared that digital assets trading was permissible. The Malaysian Shariah Advisory Council is the country’s authority that oversees the enforcement of Islamic laws in the operation of Islamic Financial Institutions. Securities Commission chairman Datuk Syed Zaid Albar announced during an online conference Invest Malaysia that it is permissible to invest and trade in digital currencies and tokens on registered digital asset exchanges.
This landmark decision will boost the crypto trading in Malaysia.
The Securities Commission chairman stated that the SC Shariah Advisory Council has resolved that, in principle, it is permissible to invest and trade in digital currencies and tokens on registered digital asset exchanges. This decision by the Shariah Advisory Council will bost the crypto trading as more than 60% of the country’s population is Muslim. Kelvyn Chuah, the founder of SINEGY, the first Malaysian digital asset exchange approved by Malaysia’s securities watchdog, told the crypto news platform Cointelegraph that this announcement bears extreme significance as more than 60% of Malaysian are Muslims. He further noted that Malaysia is aiming to be the hub of Islamic Finance and fintech.
Financial regulators around the world continue to regulate crypto.
Financial regulators around the world are currently working on enforcing strict crypto regulations to regulate the industry better. However, cryptocurrencies in most currencies are still in a grey area. Earlier last year, the Financial Action Task Force proposed guidelines for its 35 member countries to implement within a year. Several of these countries have already enforced some part of those guidelines. Countries like South Korea, Singapore, and many European countries have already implemented crypto regulations based on some of those guidelines. Earlier, South Korea passed a law making crypto trading legal in the country. Abu Dhabi Global Market also published a range of amendments to its crypto framework based on the guidelines proposed by the FATF guidelines.