Alapt

Cryptocurrency news

Malaysia's regulator has recognized compliance of crypto asset trading with Sharia law

Malaysia’s regulator has recognized compliance of crypto asset trading with Sharia law

The Sharia law Advisory Board of the securities Commission of Malaysia has ruled that trading in crypto assets does not contravene Sharia law and can be permitted.

As stated by the Chairman of the securities Commission of Malaysia Datuk Syed Zaid Albar (Datuk Syed Zaid Albar), the Advisory Council on Sharia law concluded that trading in digital assets complies with Sharia law.

“The Sharia law Advisory Council has decided that investment in digital currencies and trading in them on registered digital asset exchanges can be allowed,” said Syed Zayed during a teleconference at Invest Malaysia 2020. “This is a truly revolutionary decision of the Advisory Board, which can stimulate the development of the industry and investment in digital assets. As soon as the resolution is completed, we will publish additional information.”

To date, the securities Commission of Malaysia has authorized the operation of three crypto asset exchanges in the country-Luno, Sinegy and Tokenize. Earlier, the Commission approved the turnover of at least four digital assets in the country.

Earlier this year, the Malaysian regulator released
new guidelines for cryptocurrencies, according to which initial token offerings (ICOS) should be conducted exclusively on exchanges, that is, turn into IEO. In November last year, the Malaysian government imposed restrictions on cash transactions, as a result of which citizens of the country began to use cryptocurrencies more often.

Recall that back in 2018, a Javanese expert on Islam admitted that bitcoin complies with Sharia law. Then this statement caused growth
the price of bitcoin by a thousand dollars, as it opened the market to Muslim investors who were previously not sure that the cryptocurrency qualifies as money in Islamic teachings.