Cryptocurrency in Malaysia: Navigating Islamic legal perspectives for economic innovation and resilience
DOI:
https://doi.org/10.21834/e-bpj.v10iSI28.6952Keywords:
Cryptocurrency, Islamic Perspective, Economic SustainabilityAbstract
Cryptocurrency has emerged as a revolutionary financial instrument, transforming the global economy with its decentralised and borderless nature. In Malaysia, the compatibility of cryptocurrency with Shariah principles is a subject of intense debate. Through qualitative research methods, this paper explores the role of cryptocurrency within Malaysia’s economic framework, its implications for economic resilience, and the potential for incorporating cryptocurrencies into Malaysia’s Islamic finance sector. The findings suggest that cryptocurrency can boost economic innovation, lower transaction costs, and promote creativity. Malaysia might lead the global fintech sector by introducing bitcoin into Islamic financing, which could improve financial inclusion.
References
Aiazbekov, A. (2023). Cryptocurrency as a method of payment in the tourism sector. Financial Internet Quarterly, 19(1), 57-65. DOI: https://doi.org/10.2478/fiqf-2023-0006
Bae, G. and Kim, J. (2022). Observing cryptocurrencies through robust anomaly scores. Entropy, 24(11), 1643. DOI: https://doi.org/10.3390/e24111643
Baharudin, M. H. (2023). Exploring the Guidelines of Zakat On Cryptocurrency. Thesis Master in Contemporary Islamic Studies. Universiti Teknologi Mara. Malaysia.
Dhali, M., Hassan, S., & Zulhuda, S. (2024). The regulatory puzzle of decentralised cryptocurrencies: opportunities for innovation and hurdles to overcome. Journal of Infrastructure, Policy and Development, 8(6), 3377. DOI: https://doi.org/10.24294/jipd.v8i6.3377
Fang, F., Ventre, C., Basios, M., Kanthan, L., Martínez-Rego, D., Wu, F. & Li, L. (2022). Cryptocurrency trading: a comprehensive survey. Financial Innovation, 8(1). DOI: https://doi.org/10.1186/s40854-021-00321-6
Farooq, M. O. (2022). Islam compliance, beyond sharīʿah compliance: toward a broader socio-economic transformation. Arab Law Quarterly, 38(5), 503–545. DOI: https://doi.org/10.1163/15730255-bja10121
Glavina, S. G. and Asmyatullin, R. R. (2024). The fourth industrial revolution in Islamic finance: the case of digital currencies of central banks. International Trade and Trade Policy, 9(4), 169-178. DOI: https://doi.org/10.21686/2410-7395-2023-3-169-178
Gronwald, M. (2021). How explosive are cryptocurrency prices? Finance Research Letters, 38, 101603. DOI: https://doi.org/10.1016/j.frl.2020.101603
Gupta, H. & Chaudhary, R. (2022). An empirical study of volatility in cryptocurrency market. Journal of Risk and Financial Management, 15(11), 513. DOI: https://doi.org/10.3390/jrfm15110513
Hassani, H., Huang, X., & Silva, E. (2018). Big-crypto: big data, blockchain and cryptocurrency. Big Data and Cognitive Computing, 2(4), 34. DOI: https://doi.org/10.3390/bdcc2040034
Huey, Y. C., Angeline, Y. K. H., Teng, Y. S., Melissa, T. T. T., Chin, W. S., & Saleh, Z. (2024). Text analytics on regulation of cryptocurrency. KnE Social Sciences. 718–742. DOI: https://doi.org/10.18502/kss.v9i14.16140
Jihad, B., Lamrabet, H., & Oussama, B. (2024). Islamic Digital Currencies as a Model. KUEY. 30(5), 1810–1820.
Ji-Xi, J. T., Salamzadeh, Y., & Teoh, A. P. (2021). Behavioral intention to use cryptocurrency in Malaysia: an empirical study. The Bottom Line, 34(2), 170-197. DOI: https://doi.org/10.1108/BL-08-2020-0053
Katuk, N., Wahab, N., & Kamis, N. (2023). Cryptocurrency estate planning: the challenges, suggested solutions and Malaysia’s future directions. Digital Policy Regulation and Governance, 25(4), 325-350. DOI: https://doi.org/10.1108/DPRG-10-2021-0126
Kaya, İ. (2023). Islamic finance: fit for purpose or mere replication? İslam Ekonomisi Dergisi, 3(2), 1-18. DOI: https://doi.org/10.55237/jie.1175883
Kim, G. and Ryou, J. (2023). Digital authentication system in avatar using did and sbt. Mathematics, 11(20), 4387. DOI: https://doi.org/10.3390/math11204387
Mashatan, A., Sangari, M., & Dehghani, M. (2022). How perceptions of information privacy and security impact consumer trust in crypto-payment: an empirical study. Access, 10, 69441-69454. DOI: https://doi.org/10.1109/ACCESS.2022.3186786
Mbate, C. (2023). Understanding the impacts of financial technology in the society 5.0 era. Financial Jurnal Akuntansi, 9(1), 97-111. DOI: https://doi.org/10.37403/financial.v9i1.519
Ngozi Samuel Uzougbo, Chinonso Gladys Ikegwu, & Adefolake Olachi Adewusi (2024). International enforcement of cryptocurrency laws: jurisdictional challenges and collaborative solutions. Magna Scientia Advanced Research and Reviews, 11(1), 068-083. DOI: https://doi.org/10.30574/msarr.2024.11.1.0075
Niftiyev, I. and Kheyirkhabarli, M. (2024). The impact of covid-19 pandemic on cryptocurrency adoption in investments: a bibliometric study. SocioEconomic Challenges, 8(1), 154-169. DOI: https://doi.org/10.61093/sec.8(1).154-169.2024
Rahardja, U. (2023). Evaluating the mediating mechanism of perceived trust and risk toward cryptocurrency: an empirical research. Sage Open, 13(4). DOI: https://doi.org/10.1177/21582440231217854
Sahoo, P. & Sethi, D. (2022). Market efficiency of the cryptocurrencies: some new evidence based on price–volume relationship. International Journal of Finance & Economics, 29(2), 1569-1580. DOI: https://doi.org/10.1002/ijfe.2744
Sapra, N. and Shaikh, I. (2023). Impact of bitcoin mining and crypto market determinants on bitcoin-based energy consumption. Managerial Finance, 49(11), 1828-1846. DOI: https://doi.org/10.1108/MF-03-2023-0179
Securities Commission Malaysia. (2020). Resolutions Of the Shariah Advisory Council of the SC (the 233rd and 234th SAC of SC Meetings – 29 June 2020 and 20 July 2020). Accessed from https://www.sc.com.my/development/icm/shariah/resolutions-of-the-shariah-advisory-council-of-the-sc
Sousa, A., Calçada, E., Rodrigues, P., & Borges, A. (2022). Cryptocurrency adoption: a systematic literature review and bibliometric analysis. Euromed Journal of Business, 17(3), 374-390. DOI: https://doi.org/10.1108/EMJB-01-2022-0003
Yeong, Y., Kalid, K., & Sugathan, S. (2019). Cryptocurrency adoption in malaysia: does age, income and education level matter? International Journal of Innovative Technology and Exploring Engineering, 8(11), 2179-2184. DOI: https://doi.org/10.35940/ijitee.K2035.0981119
Yusof, H., Zolkaply, Z., & Anuar, M. A. (2023). Are the young investors ready for cryptocurrency investments in Malaysia? The Eurasia Proceedings of Science Technology Engineering and Mathematics, 22, 377-388. DOI: https://doi.org/10.55549/epstem.1351027
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Mohammad Hidir Baharudin, Rahmawati Mohd Yusoff, Ros Hasri Ahmad, Muhamad Ismail Pahmi, Siti Masnah Saringat, Shafiee Md Tarmudi

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.