IncuBlock, South Korean blockchain lab has signed a Memorandum of Understanding (MOU) with a Malaysian government advisory group for blockchain tech advancement allowed under Sharia law, local news outlet IT World announced on June 18.
Blockchain tech has already been utilized as a part of terms of tracking halal food, as UK-based HALAL TRAIL has started utilizing blockchain to track domestic animals and fresh food from farms to table through the halal food chain.
The board, Majlis Perundingan Melayu (MPM), will work with both IncuBlock and MPM’s international associates, Global Cornerstone Group, on sharing knowledge and building up a blockchain platform and a decentralized application (DApp) that will meet the social necessities to be viewed as halal (allowed) by the Sharia law.
Kwon Won-seon, CEO of IncuBlok, said that the organization’s involvement with blockchain will be an advantage for the partnership:
“I will make a great effort to utilize the know-how of the blockchain we have accumulated over the years to develop the Islamic blockchain platform practically.”
Cryptocurrency’s place in Islamic banking and whether it can be viewed as halal can’t be addressed essentially, as Bitcoin (BTC) isn’t solidly characterized as cash according to Islam.
A Fintech startup situated in Indonesia launched a report expressing that Bitcoin is at any rate “generally permissible” under Sharia April, taking note that crypto’s wide acknowledgment, an absence of control by a central authority, and dependence on blockchain could make it more secure than current financial frameworks. The report concluded by cautioning the Islamic group to be careful about beginning coin offering (ICO) scams coming after Muslims that promote settled returns as a “halal investment.”
Dato Hassan Binhmad, Chairman of the Malaysian Government Advisory Committee (MPM), said with respect to the MOU that he trusts the cooperation will “lead to the development of blockchain technology that will be led by Malaysia and be used throughout the Islamic community.”