{
  "id": 7709835,
  "title": "Fitch flags gradual crypto growth in Islamic finance",
  "url": "https://urgent.news/2026/09/16/fitch-flags-gradual-crypto-growth-in-islamic-finance",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T05:07:45.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/09/1533936/fitch-flags-gradual-crypto-growth-islamic-finance"
  },
  "original_language": "en",
  "account": "Fitch Ratings anticipates gradual growth in cryptocurrency presence within Islamic finance across certain regions, including Malaysia. The firm attributes this development to supportive regulatory frameworks, enabling regulations, and national rulings based on Islamic law. In Malaysia, the Securities Commission's Shariah Advisory Council has certified several cryptocurrencies as sharia-compliant since 2020, with Bitcoin, Ethereum, Ripple, and Stellar among them. By the end of the first half of 2026, ten digital asset entities, such as exchanges, custodians, and initial exchange offering operators, were subject to the Securities Commission's regulation.\n\nThe total trading volume on regulated digital asset exchanges surged by 23% year-on-year to surpass US$4 billion in 2025; however, it still constitutes only 2.5% of the domestic equity market's traded value. Bank involvement remains primarily limited to providing services to registered operators. Nonetheless, the adoption of cryptocurrency in other markets is expected to remain inconsistent, primarily due to varying religious interpretations, the absence of global Islamic finance standard-setting body guidance, and cautious bank participation.\n\nFitch identifies the United Arab Emirates (UAE) as an emerging global hub for virtual assets. Transaction volumes among entities overseen by Dubai's Virtual Assets Regulatory Authority reached nearly US$680 billion in 2025, with assets under management exceeding US$2.5 billion. As of September 2026, the UAE had licensed over 55 virtual asset service providers. In 2025, the UAE's Higher Shariah Authority declared bitcoin transactions permissible. Consequently, a few UAE conventional and Islamic banks have since started offering cryptocurrency brokerage and custody services, placing the UAE ahead of most core Islamic finance markets regarding direct bank participation.\n\nBahrain is also progressing its crypto-asset ecosystem, hosting nine crypto-asset service providers as of September 2026, several of which are deemed sharia-compliant. The Central Bank of Bahrain licensed its first stablecoin issuer in June. Qatar's digital-asset infrastructure has advanced more visibly than its cryptocurrency offerings, indicating that blockchain-based applications for sharia-compliant, asset-backed finance might gain traction earlier than bank-led cryptocurrency activities. In contrast, Saudi Arabia has yet to implement legislation governing cryptocurrencies. Sharia scholars have differing views on cryptocurrencies, with some considering them incompatible with Islamic principles, while others deem them permissible under specific conditions. The lack of formal guidance from the Accounting and Auditing Organisation for Islamic Financial Institutions and the Islamic Financial Services Board further hampers harmonization across jurisdictions.",
  "summary": "KUALA LUMPUR: Fitch Ratings expects cryptocurrency offerings in Islamic finance to gradually develop in some jurisdictions including Malaysia.",
  "key_points": [
    "Fitch predicts gradual crypto growth in Islamic finance in regions like Malaysia.",
    "Malaysia's Shariah Advisory Council certifies cryptocurrencies as sharia-compliant since 2020.",
    "UAE emerges as a global hub for virtual assets with over 55 licensed service providers."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}