The government of Malaysia has unveiled its blueprint for a blockchain center that complies with Shariah law.
On Tuesday, II Datuk Seri Amir Hamzah Azizan, Malaysia’s Minister of Finance, unveiled plans for the Labuan International Business and Financial Center (Labuan IBFC), which he said will be the first blockchain hub (SBH) in the world to comply with Shariah law.
The government of Malaysia created the Labuan IBFC special economic zone in 1990. In the areas of digital financial services, wealth management, insurance, and cross-border transactions, it provides a variety of investment options and corporate structures.
Reports from May 28th state that Labuan IBFC has drafted the SBH master plan with the goal of becoming the special economic zone’s leading center for digital finance and a blockchain technology test bed.
“This master plan utilizes blockchain technology to improve the Islamic digital economy, making sure it satisfies the demands and principles of the worldwide Muslim community and establishing Malaysia as a frontrunner in Islamic digital banking,” Azizan declared.
General Manager of the Labuan Financial Services Authority, Nik Mohamed Din According to Nik Musa, the SBH master plan has the potential to accelerate change by bringing together digital technology service providers from across the world and encouraging them to work together.
The federal government of Malaysia has reportedly offered a five-year tax exemption to Islamic digital players in Labuan IBFC, beginning with the 2024 assessment year, in an effort to strengthen the zone’s position as a center for Islamic finance.
Also Read: Beyond the Hype: Practical Applications of Crypto in Online Roulette
Wallets