Internet Investment Scheme Banned By National Fatwa Council
Posted on 15th April, 2007
I came across a shocking headline while reading AFP news recently which says the Malaysia fatwa against Internet trading.
The news reads :
“A Muslim council in Malaysia has issued a religious ruling or fatwa banning people from using the Internet to trade shares or makes investments.”
Regardless of one’s religion, this banning is worrying to those who are working and doing business on the Internet in Malaysia.
I started to imagine how this could seriously hamper the development of e-commerce and the future of doing business via the Internet in Malaysia.
My worries soon evaporated as I checked the local news sources and was relieved to find out that this banning applies only to Internet investments that promised a fixed return such as those containing elements of a pyramid or ponzi scheme. One of these is the widely popular Swiss Cash Mutual Fund.
A ponzi scheme is a fraudulent investment scheme that promise abnormally high returns to investors. The ever increasing flow of money comes from new investors rather than from net revenues generated by doing a real business.
In case you missed the news, here are some of them