Zakat payment from cryptocurrencies and crypto assets

This paper aims to examine the existing practice of accepting zakat payments using cryptocurrencies and crypto assets by discussing its Shariah issues. This is qualitative research in nature, as unstructured interviews with experts in the field were conducted to understand the existing practice regarding zakat on cryptocurrencies/crypto assets while literature on the topic was reviewed to derive conclusions. It is found that there are divergent views among contemporary Shariah scholars on the Shariah permissibility of cryptocurrency and crypto assets. As such, by evaluating the existing practices of some companies, this study has concluded that there is room to pay zakat using cryptocurrencies and from investments made on crypto assets. As long as they have been screened and classified as Shariah-compliant, they can be qualified to be part of one's wealth from which zakat shall be paid. However, the findings of this research shall be subject to the fatwa and rules adopted in the specific jurisdiction in which the zakat payer resides. Laws made by the ruler to benefit the public ought to be considered in upholding the masalih (public interests) of all, which is in line with the legal maxim of "tasarruf al imam manut bi al-maslahah" (the ruler's decision is dictated in favor of the people). It is anticipated that the findings of this research will benefit zakat organizations and zakat payers in understanding how they should deal with cryptocurrencies and crypto assets in the collection and payment of zakat

Widening distrust of globalisation could herald economic fragmentation

It was the Ricardian theory of comparative advantage that provided the rationale for why nations should trade among themselves and how it can be beneficial to all. Steady growth in trade led to increased economic integration between countries and the resulting globalisation. The post-war years, from 1945 onwards, saw extensive growth in cross-border movement of goods, services and capital. This peace dividend, which sustained over the next decades, received a major boost in the 1980s with the integration of China and the former Soviet bloc nations into the global trading system. The subsequent formation of the World Trade Organization also helped further the globalisation process by establishing a framework of rules and norms. Over the years, despite the ebbs and flows, there is no disputing the many benefits that have accrued to the global community. Globalisation enabled poorer countries to catch up and pull themselves up through export-oriented growth. As a result, at least a billion people have been estimated to have been pulled out of poverty. Nations became closely integrated as production became increasingly specialised in the name of economies of scale and cost efficiencies. As output efficiencies reduced product costs and increased affordability, the poorest segments benefited. Further, as outsourcing of manufacturing and services from high cost to lower cost nations became necessary for competitiveness, skilled and semi-skilled labour in developing countries benefited. China became the world�s factory and India the provider of its backroom support systems. Despite these obvious benefits of globalisation, a recent International Monetary Fund (IMF) policy paper points at rising discontent and dysfunctional policies initiating a process in reverse thrust. The inflection point according to the paper was the post-global financial crisis period from 2009

Growth differences between former colonies

The objective of this study are to examine the impact of colonization on former colonies on their economic growth performances. The relationship between economic growth and selected independents variables are discussed covering 72 former colonies for the period of 1995 to 2015. The objective is to investigate the determinants of growth in former colonies colonized by four former conquerors namely Spain, France, The United Kingdom and The Soviet Union (Russian Federation). To achieve this objectives, we employed Generalized Method of Moment (GMM) estimator popularized by Arellano and Bond (1991) and Blundell and Bond (1998) and the independent variables of the estimation to achieve the targeted objectives, are the control variables of growth gross fixed capital formation (GFCF), as a proxy for capital and total population (TPOP) as a proxy for labor. This study also uses other independent variables such as length of colonial period (COLOH) which is the focus variable, domestic credit to private sector (DCPS), trade openness (TOP), foreign direct investment (FDI) and a couple of institutional qualities representing variables such political rights (PR) and civil liberties (CL). The results are quite consistent and robust - colonization is positive and highly significant implying that colonization indeed has a positive impact on the colonized countries, though the masters are perceived as parasites. They also prepare the right infrastructures that could enable the colonized countries to grow economically. As for the other variables including the control variables population, domestic credit to private, trade openness, and gross fixed capital formation are also positive and significantly related

Dawabit 'iqmal maqasid al-Shari'ah fi tawjih al-mu'amalat al-maliya al-mu'asirat

An abstract is written in Arabic

Regional currency arrangements come with huge challenges

De-dollarising seems to be in vogue these days. China, Russia and their BRICS (Brazil, Russia, India, China and South Africa) partners may have initiated the narrative but the desire to remove or at least reduce the US dollar's hegemony has spread. Many nations, including Malaysia, have openly articulated their desire to move away from US dollar dependence for their trade. Though it has been a long time coming, the rising disdain of the US dollar is in no small part due to American policy hubris and abuse of its reserve currency status. As the only country that can repay its foreign debt in its own currency, it has run years of current account deficits, created a mountain of debt surpassing US$30 trillion (RM136 trillion) and effectively piggybacks on the rest of the world with its autarchic monetary policies

Crop takaful in the Maldives

Participants in crop takaful would be compensated for any loss or damage suffered due to any of the aforementioned calamities. Crops covered in this takaful product include papayas, brinjals, butternuts, watermelons, pumpkins, cucumbers, melons and bananas. The sum covered will be automatically calculated based on the selected crop type and harvesting land size. Apart from crop takaful, takaful products offered by Ayady Takaful include comprehensive motor takaful, third-party motor takaful, expatriate plus takaful, health takaful, travel takaful, hull takaful and hajj and umrah takaful. Ayady Takaful also offers both general and family takaful products. Currently, there are five insurance companies registered with the Maldives Monetary Authority (MMA) in the Maldives and among them the only fully-fledged takaful company is Amana Takaful Maldives; Allied Insurance Company of the Maldives is the only company with an Islamic window to offer takaful under its brand name, Ayady Takaful

Al-istithmar al-masul ijtima'yan wa tatbiqatuhu fi al-muasasat al-maliyat al-Islamiyyah

An abstract is written in Arabic

Financial derivatives: markets and applications

This book is designed for beginners who possess no previous knowledge or familiarity with derivatives. Written in an easy-to-read style, it guides readers through the challenging and complex world of forwards, futures, options, and swaps. The emphasis on Asian markets and contracts enables easier understanding. Financial derivative contracts from Malaysia and select contracts from Thailand, Singapore, and Hong Kong derivative markets are covered. For each derivative contract, their three common applications hedging, arbitrage, and speculating are shown with fully worked out examples. Extensive use of illustrations, graphics, and vignettes provide for easy comprehension of the underlying logic of derivatives

Selected issues in the use of RegTech in the Islamic and conventional financial markets

This study aims to explore several challenges in the use of regulatory technologies (RegTech) in Islamic and conventional financial markets and share recommendations in this regard. A qualitative research methodology was used to identify the existing challenges. Literature was reviewed and analyzed, and seven experts were interviewed or consulted online and their feedback examined. The judgment of the case B2C2 Ltd v Quoine Pte Ltd. was reviewed. This study reveals a lack of relevant regulatory frameworks capable of meeting some of the evolving challenges, lack of awareness among market players and lack of expertise in RegTech. The list of additional challenges includes the issue of legacy technology, the weaknesses of human programmers and the need for a multifaceted solution for compliance requirements. This study notes the novelty of RegTech in the financial world, especially in the Islamic financial market. Thus, there is a dearth of relevant literature. This study assists relevant conventional and Islamic financial market entities and authorities in determining the potential impact of RegTech on their respective businesses and the financial system

Shariah screening and corporate governance: the case of constituent stocks of Dow Jones US Indices

Shariah screening discards the firms that belong to impermissible business sectors (or sin industries) and follow capital structure with high debt and current assets. This study tests whether the firms passing Shariah screening have better (or worse) governance quality as compared to firms not subjected to Islamic screening. The screened firms may have lesser governance quality as they cannot use debt to discipline managers or achieve optimal capital structure. On the contrary, they may be better governed as these firms get higher presence of institutional investors and better analyst coverage. This paper provides comparison of governance quality of Shariah compliant (SC) firms in United States by using proprietary dataset of Dow Jones US Indices. The screened firms offer ground for a natural experiment as they pass negative ethical screening and meet financial criteria for the inclusion in the index. The findings suggest that the SC firms have lesser governance quality than Shariah Non-Compliant firms. The lower level of governance can be attributed to lower Size, lower Profitability, higher Dividend Payout, higher Total Risk and lower Free Cash Flow. Various robustness tests are performed to validate the findings and the results remained robust. These findings provide useful insights about the governance mechanism of SC firms that are emerging as an important alternative investment class in the last two decades