KUALA LUMPUR: A woman failed to claim Bitcoin cryptocurrency worth over RM10 million from her former husband after their divorce four years ago.
This was after the Syariah High Court in Shah Alam ruled that cryptocurrency is not considered part of the matrimonial debt claimable by a former spouse.
The mother of two is seeking RM10,095,109.20 in Bitcoin following the couple's divorce in 2019.
Syarie judge Mohammad Khalid Shaee@Shaii, when dismissing the application, said Bitcoin did not comply with the Selangor Fatwa Council's regulations as it was deemed 'unregulated' by the authorities.
"The court is of the view that based on the decision of the state Fatwa Committee meeting, transactions and dealings related to Bitcoin are deemed permissible (harus) as long as the parties involved ensure compliance with the specified parameters.
"As of the date of this judgment, there is no licensed digital currency exchange platform approved and regulated by the authorities.
"There is no recognised regulatory body appointed by the government to oversee and ensure the integrity of digital finance, as performed by Bank Negara Malaysia (BNM) in ensuring monetary stability and a conducive financial environment.
"As of Jan 6, 2021, 56 cryptocurrency firms had registered with BNM, but the central bank still maintains its stance that digital currencies are illegal in this country.
"BNM also has issued the policy on Prevention of Money Laundering and Financing of Terrorism for Digital Currencies (Sector 6), to enhance transparency in digital currency activities.
"Nevertheless, BNM still reminds the public to be vigilant when dealing with digital currencies, as they are not protected by the standards or regulatory practices applicable to financial institutions supervised by the bank," he said.
Khalid said the plaintiff also failed to prove that the Bitcoin accounts involved in this dispute adhered to the parameters established by the state Fatwa Committee.
"The court found that the plaintiff did not specify in any of its pleadings or at any stage in the proceedings regarding the compliance of the Bitcoin accounts," he added.