Digital Asset and its Regulation in Malaysian Islamic Capital Market

• Main Authors: Hasan, Aznan, Mohd. Zain, Nor Razinah
• Format: Conference or Workshop Item
• Language: English
• Published: 2020
• Subjects: BPH Islamic Economics
• Online Access: http://irep.iium.edu.my/89886/1/89886_Digital%20Asset%20and%20its%20Regulation%20in%20Malaysian%20Islamic%20Capital%20Market.pdf; http://irep.iium.edu.my/89886/

This paper attempts at discussing the recent development on digital assets and its regulation in Malaysia. Focusing on Islamic capital market, such development is considered essential as the first step to recognize the status of digital assets (both digital currency and digital token) and the related rights that may arise from such assets. Besides examining the current regulation on digital asset within the ambit of Islamic Capital Market, the paper will also discuss the Shariah Advisory Council of Securities Commision’s Resolution SAC of SC) regarding the status of digital asset from Shariah point of view. The paper is developed based on doctrinal legal approach and content analysis from the available legal sources. The paper brings an insight on the impact of introducing digital assets to Islamic capital market in Malaysia. The development of regulations is indeed important to continue to assist their acceptance and useability of the said assets among investors and traders. It also establishes the position of SAC of SC, in respect of digital currency and its application in Malaysian Islamic Capital Market. The paper is applicable to Malaysian legal scenario and focusing on Islamic capital market. By having a proper regulation to regulate digital assets and their application in Malaysia, it is evidently able to assist the relevant authorities of Islamic capital market to govern and recognize the rights and duties that may emerge from the trading of digital assets. A research of this kind is important to increase awareness and understanding of investors and traders relating to digital assets as recognized under the legislated regulation. This paper promotes the application of digital assets and their adoption among investors and traders. Whilst, it promotes to the idea in strengthening the application of digital assets in relation to Malaysian Islamic capital market