Sharia Divides: Diverging Crypto Rules Emerge Across Islamic Finance Markets

Across Islamic finance markets, cryptocurrency regulations have fragmented due to diverging Sharia views and interpretations.

Fitch Ratings reported that while some countries like Malaysia and the UAE have created clear rules for crypto assets, others are still developing their regulatory frameworks.

In Malaysia, the Securities Commission Shariah Advisory Council approved several cryptocurrencies as Sharia-compliant between 2020 and the first half of 2026, including Bitcoin, Ethereum, XRP, and Stellar.

Regulated exchanges in Malaysia handled over $4 billion in trading in 2025, a 23% increase from the previous year.