Malaysia Approaching Fintech Regulation in an Interesting Way
Regulators and lawmakers across the world are scrambling to figure out just what the financial technology sector is, what is represents and how to regulate it.
Australia, Britain and Singapore have been on the forefront of this new wave of fintech regulation. Now Malaysia wants to join the fray, but in a rather interesting way.
At a conference last week, the new governor of Bank Negara Malaysia, the country’s central bank, said he wanted to approach fintech regulation with an Islamic twist.
Although Malaysia practices freedom of religion, Islam is the official religion of the country, with close to 62 percent of Malaysians practicing the faith.
Governor Muhammad Ibrahim discussed the newly formed Investment Account Platform, an investment platform that follows sharia law.
Ibrahim noted that the fintech revolution represents major opportunities for the country, but not without risks.
He and other major financial players have taken steps to assure there is proper financial regulations for fintech while also introducing regulations that ensures the industry adheres to sharia law.
The main push of Ibrahim’s plan is for a safer and more robust fintech sector.
He discussed how the central bank plans to create an ever changing framework around fintech that can help the industry be safer and more agile.
“We will be providing more information to the market on our approach to the regulation of fintech developments as our review progresses. In the meantime, our engagements with individual firms will continue, supported by dedicated resources within the Bank to lead the review,” said Ibrahim.