Malaysia grows into open Islamic crypto market

Malaysia is developing into one of the most accessible Islamic markets for cryptocurrency. That is the conclusion of Fitch Ratings in a report based on data from the Malaysian securities regulator. Clear regulation and official sharia approvals form the basis of that position. Trading volume on regulated exchanges rose by 23% in 2025 to more than $4 billion.

In brief:

• The Malaysian securities regulator approved several cryptocurrencies as sharia-compliant, including Bitcoin, Ethereum, XRP and Stellar.
• Trading volume on regulated digital exchanges grew by 23% in 2025 to more than $4 billion.
• Ten licensed parties now operate under the supervision of the securities regulator, but banks still play a limited role.

Sharia approval for major cryptocurrencies

The Shariah Advisory Council of the Securities Commission Malaysia, the Malaysian securities regulator, declared several cryptocurrencies sharia-compliant between 2020 and the first half of 2026. These include Bitcoin, Ethereum, XRP and Stellar.

According to Fitch, ten parties are now active under the regulator’s rules, including exchanges, custodians and providers of initial exchange offerings. According to the rating agency, that combination of religious recognition and a regulated market structure makes Malaysia stand out in the Islamic financial landscape.

Trading volume grows, but remains limited compared with the stock market

Total trading volume on Malaysian regulated crypto exchanges rose by 23% year on year in 2025 to more than $4 billion. That sounds like a substantial increase, but it still amounts to only 2.5% of the value traded on the domestic stock market.

The involvement of banks remains limited for now. Financial institutions mainly offer transaction services to licensed operators, but do not take on a broader role in the crypto market.

Expectations for Islamic crypto offerings

Fitch expects the crypto offering within the Islamic financial sector to continue growing gradually in certain countries. According to the rating agency, that growth is supported by clear regulation, a favourable legal climate and, in some cases, national sharia rulings. Malaysia combines all these elements, which gives the country a pioneering position within this specific segment.

Other countries are also working on legislation for digital assets. For instance, the US House of Representatives is planning a vote on two crypto tax bills.