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Malaysian firm adds Islamic certification to cryptocurrency

Reuters  |  SYDNEY 

By Vizcaino

SYDNEY (Reuters) - Malaysia-based firm has received a sharia-compliant certification for its gold-backed cryptocurrency and plans to launch its in later this year, the company said.

Its cryptocurrency product, dubbed GOLDX, was launched at the end of last year and has now received certification from Amanie Advisors, a Malaysia-based Islamic finance consultancy, said

Unlike other cryptocurrencies, GOLDX involves the issuance of a token backed by physical gold stored in a vault, and transactions must be completed within a defined time period, Ho said.

This means the issuance process and audited assets can address transparency, certainty and immediacy of transactions - important principles in Islamic financial contracts.

The move highlights how fintechs, companies that use new technology to revamp banking services, are extending their influence to Islamic spanning the and

Over the past year, the firm has rolled out a mobile app in that is based on blockchain, the system that first emerged to facilitate digital currencies such as bitcoin.

That mobile app, which allows users to buy and sell physical investment grade gold, was also certified by

plans to expand its gold platform into in coming months, while potentially adding a third market by the end of the year, said Ho.

The firm 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

(Reporting by Vizcaino; Editing by Eric Meijer)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 20 2018. 12:26 IST