An enhanced shariah and legal framework governing estate management of digital assets in Malaysia

The rapid growth of digital technology has transformed financial systems, prompting Malaysia to regulate crypto assets in response to their rising adoption. The increasing ownership of crypto assets among Malaysians presents challenges for Islamic estate planning and inheritance, as underdeveloped legal frameworks risk asset loss and may impact the socio-economic well-being of Muslim communities. This study aims to analyse the acceptance of crypto assets from a Shariah perspective, assess the adequacy of the current legal framework for Islamic estate planning of crypto assets in Malaysia, and explore related Shariah and legal issues. It also seeks to propose an improved Shariah-compliant and legal framework aligned with Malaysia’s regulatory requirements. This study employs a qualitative socio-legal research design, using semistructured interviews with key stakeholders and library-based research for data collection. Inductive, content, and thematic analysis methods were applied to ensure robust findings. The study reveals that crypto assets are recognised as mal (property) under Shariah law. However, it also identifies significant regulatory gaps and inconsistencies in inheritance processes. The proposed framework addresses these challenges by integrating digital asset management with Islamic principles. The findings highlight the need for collaboration among policymakers, estate planners, and digital asset exchange (DAX) providers to implement this framework effectively. This research contributes to the development of robust Islamic estate planning mechanisms that ensure Shariah compliance, regulatory alignment, and economic stability in Malaysia