While Australia, Singapore and the UK leading the revolution of fintech regulation, Bank Negara will approach it’s lawmaking with an Islamic twist.
Despite Malaysia practicing freedom of religion, Bank Negara is set to follow the newly formed Investment Account Platform (IAP), which closely follows the principals of sharia law.
Approximately 60 per cent of Malaysians practice Islam, with the principals of its teachings now set to be adopted to create a safe and secure fintech ecosystem.
This is a new take on the wave of regulatory processes, which have seen regulators across the globe struggling to account for the financial technology sector with all of its potential possibilities and it’s dangers.
Bank Negara governor Muhammad Ibrahim said that the IAP will represent the major opportunities the fintech revolution has presented for Malaysia, but will see to identify and control risk factors that could damage the financial ecosystem of the country.
The sharia-based regulation is set to create a more robust and staunchly protected fintech sector, by creating a regulatory framework that will allow fintech to be both safe and agile.
While new regulation is set for implementation around July, Bank Negara official remain otherwise occupied after filing a police report against the Wall Street Journal last week for supposed leaking of confidential documentation.