Legal Framework Synergy: Indonesia and Malaysia's Role in Advancing Islamic Fintech Regulations
DOI:
https://doi.org/10.18196/iclr.v7i2.25451Abstract
The rapid advancement of digital technology has significantly influenced both conventional and Islamic financial systems. Regulatory frameworks for these systems differ, reflecting the unique characteristics of Islamic finance. Indonesia and Malaysia, as Muslim-majority countries, have drawn international attention for their roles in developing the Islamic financial industry. Effective growth of this industry requires robust regulatory support to achieve its objectives, particularly in advancing financial technology. This study investigates the regulatory frameworks of Indonesia and Malaysia to determine their adequacy in addressing challenges and supporting Islamic financial technology development. Using a normative legal research method, this study analyzes legal norms and regulations from both countries, supported by references from books, journals, articles, and statutory provisions on Islamic financial technology. The findings reveal that the regulatory systems in Indonesia and Malaysia differ significantly and are not yet fully capable of fostering the progressive growth of Islamic financial technology. The study concludes with recommendations for enhancing regulatory frameworks to ensure they accommodate rapid technological advancements while maintaining the principles of Islamic finance. These insights provide valuable guidance for policymakers and stakeholders in navigating the evolving landscape of Islamic fintech
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