Sharia-Compliant Crypto Rules Vary Widely Across Islamic Finance Markets
The cryptocurrency market is fragmented across major Islamic-finance markets due to differences in regulation and Sharia interpretations, according to Fitch Ratings. The report highlights that countries with clear rules or national Sharia authorities approving digital assets are likely to see gradual growth in the crypto market.
Malaysia stands out as one of the few countries with a formal system for deciding whether digital assets comply with Sharia. Its Securities Commission Shariah Advisory Council approved several cryptocurrencies, including Bitcoin and Ethereum, between 2020 and mid-2026. Regulated exchanges handled over $4 billion in trading in 2025, a 23% increase from the previous year.
The UAE has taken a different approach, combining regulation with a national Sharia ruling on Bitcoin. The country's Virtual Assets Regulatory Authority has licensed over 55 virtual-asset service providers and assets under management exceeded $2.5 billion in 2025.