Breaking

Friday, October 9, 2020

MALAYSIA SHARIA ADVISORY BOARD: CRYPTO HAS GREAT POTENTIAL


 

After the Malaysian Sharia Advisory Board allowed digital asset trading in July 2020, the growth of cryptocurrencies in Malaysia looked bullish. Malaysians are starting to be open to making digital assets as investment assets.


Reporting from The Malaysian Reserve, Dr. Modh Daud Bakar believes that the development of digital assets including crypto has enormous potential. However, the challenge that must be faced today is a lack of understanding of asset classes. Thus hampering the large adoption of this crypto currency.


The Chairman of the Malaysian Securities Commission's Sharia Advisory Board also said that only 2% of Malaysians had knowledge of cryptocurrencies. This was conveyed when he was a speaker at the SCxSC Fintech Conference 2020 in Kuala Lumpur on 6 October 2020.


Furthermore, he also added that currently crypto currency is not considered a legal means of payment according to religious law in Malaysia. On the other hand, crypto has officially become a tradable / tradable commodity asset, but on the condition that it does not support anything ribawi. Its value should be measurable like gold and silver.


“This is a medium of exchange, and we can't stop other people from using commodities as a medium of exchange. It's as good as buying e-tickets or commodities on the market. "


Not only that, he also added that the adoption of digital assets in Malaysia will open up many other interesting areas. Including the potential to continue to grow in line with the growth of the world's digital economy.


After the drastic increase in the price of Bitcoin in 2017, there has been a debate about the permissions regarding crypto in Islamic law. Quoted from Cointelegraph, CEO of FinTek in Indonesia Matthew Martin argues that crypto is more likely to be permitted under Islamic law than fiat. Given that crypto has a proof-of-work basis rather than debt.


Even though Malaysia is a secular country, more than 60% of its citizens practice Islam from a societal perspective.


With the clarity of regulations and laws related to crypto in Malaysia, Dr. Bakar also added,


"This will open up opportunities to take advantage of crypto as a commodity or as an investment in companies."


Currently, there are three licensed cryptocurrency exchanges, such as Luno Malaysia, Tokenize Malaysia, and Sinegy Technologies.

No comments:

Post a Comment