KUALA LUMPUR – Financial Technology Company HelloGold has received has received a Shariah-compliant certification for its gold-backed cryptocurrency and expected launch online gold platform this year.
Malaysian based finance consultancy Amanie Advisors granted permission to operate cryptocurrency product GOLDX.
GOLDX involves the issuance of a token backed by physical gold stored in a vault in Singapore.
The listed terms reportedly guarantee transparency, certainty and immediacy of transactions, which are the basic principles for Islamic financial contracts.
The step may boost the number of fintech corporations willing to expand into Islamic finance markets, opening up such regions as the Middle East and Southeast Asia.
Last year, HelloGold launched a blockchain-based mobile application in Malaysia. The app, which provides users with an opportunity to buy and sell physical, investment-grade gold, was also certified by Amanie Advisors. The company plans to extend its online gold platform in Thailand later this year, with the third market expected to emerge by the end of 2018.
HelloGold is also exploring other unspecified assets for its blockchain technology, which involves a shared electronic ledger that allows parties to track transaction information through a secure network.
In September, the head of Malaysia’s central bank said that the office was working on regulations for trading and exchanging cryptocurrencies. Muhammad bin Ibrahim stressed that enterprise converting cryptocurrencies into cash will be on the radar of Malaysia’s Bank Negara.
