More than 60 per cent of the Malaysian population are Muslims, and plenty of them was hesitant to trade and invest in cryptocurrency due to the fear that it would be against the Shariah.
Last week the Shariah Advisory Council of Malaysia’s commission had issued an advisory that to trade and invest in the cryptocurrencies is not opposed to the Sariah and one’s can be registered in crypto exchanges.
Similarly, the Shariah Advisory Council Malaysia has expressed its concern on the investment and trading cryptocurrency in the country, in last week at the Invest Malaysia 2020. The Edge Markets recited Shariah Advisory Council Security commission chairman Syed Zaid Albar as telling during a telephonic conference panel session.
The Security commission Council has solved it in a proposition that it is legitimate to trade and invest in virtual currencies and tokens to register the digital capital exchanges.
Moreover, it is an extremely unprecedented decision taken by the Shariah Advisory Council, which can bring enormous development in investment and trading in digital currency. When this resolution is finalized, then we will share further details with you people.
As per the Shariah Advisory Council website, it is compulsory to assure that the execution of the Islamic capital market observes with the principles of Islamic Shariah. Its range of jurisdiction is to guide the commission on all affairs regarding the extensive development of the Islamic capital market and to work as a testimonial centre for all Islamic capital market problems.
The SC of Malaysia’s Shariah Advisory Council has permitted cryptocurrency trading and investing on lawful crypto exchanges. Currently, Malaysia holds three accepted transactions.
Being a multiracial country and with the current population of about 32 Million in which round about 60 per cent (19.43 million) are the Muslims. Plus, the Islamic Tourism Centre of the country expresses that Islam is the official religion of Malaysia as ratified in the constitution.
Likewise, Shariah Law in the country is just compulsory for the Muslims, and it is practised to solve conflicts regarding family matters and creed: the centre added.
Regulation of the Cryptocurrency in Malaysia’s:
Additionally, When the Order of 2019 came into effect, regarding Capital Markets and Services and virtual Currency and Tokens. In January 2019, the securities commission of Malaysia’s have commenced regulation in the cryptocurrency industry.
Tokenize Technology and Luno Malaysia, as well as Sinegy Technologies, these are the three cryptocurrency exchanges. They were approved to be used in Malaysia. Different researches are published regarding the establishment of cryptocurrency trading and investment, whether it is allowed by the Sharia.
In last January the Japanese Okwave Inc., a digital media giant also conducted joint research with University Technology Malaysia on Shariah-compliant over cryptocurrency. The study was giving much stress on the adoption of the digital coin is developing globally.
The data reveals that digital coins usage in the Muslim countries in the lowest rate across the world due to their hesitation that it is repugnant to the Islamic Shariah.