Bitcoin and Cryptocurrency
Malaysia's regulatory stance on digital asset investment
The SC Malaysia permits investment in digital assets listed on registered Digital Asset Exchanges (DAX) under its 2020 Digital Assets Guidelines. The Shariah Advisory Council considers regulated digital assets permissible as a form of mal (property), subject to conditions.
Full Ruling
The Shariah Advisory Council of the Securities Commission Malaysia ruled that digital assets registered under the Capital Markets and Services Act and traded on licensed DAX platforms carry the characteristics of mal (property) and are permissible for investment. Conditions: (1) The digital asset must not represent ownership in a haram business. (2) It must be acquired through a legitimate sale, not gambling or speculation. (3) The investor must intend genuine ownership, not mere price speculation. Unregulated cryptocurrencies not listed on licensed DAX remain subject to the general prohibition on gharar.
Rationale & Reasoning
Malaysia's regulatory framework reduces the gharar (uncertainty) concern by providing transparency, registration, and oversight. Regulated markets create the conditions for permissible trade analogous to regulated commodity exchanges.
Rule Basis (Daleel)
- 01SC Malaysia Digital Assets Guidelines 2020
- 02Principle of mal (property)
- 03Reduction of gharar through regulation
Conditions for Permissibility
- ✓Digital asset must be listed on SC-registered DAX
- ✓Must not represent ownership in haram business
- ✓Genuine investment intent, not gambling
Citations & Sources
SC Malaysia – Digital Assets Guidelines 2020
Securities Commission Malaysia · 2020
Ref: SC/GL/4-2020