Adab Solutions, a UAE-based crypto startup has announced the launch of the First Islamic Crypto Exchange (FICE), the only crypto exchange in the world that is designed to be in compliance with Sharia law.
Islam and Crypto
According to a report from Trade Arabia, an in-house Sharia Advisory Board (SAB) made up of independent international Sharia experts will be in place to ensure that the exchange achieves full compliance with the tenets of Islamic law at all times.
The purpose of the project is to “ensure an enhanced quality of assets on exchange, as well as enhanced inclusion of Islamic cryptocurrency enthusiasts and traders.”
While to the uninitiated, the move may seem somewhat left field, there is actually a large amount of synergy between the functions of cryptocurrency and Sharia law. Under Sharia law for example, the fractional reserve lending system that underpins most fiat currencies is considered to be usury and is frowned upon.
Cryptocurrencies like bitcoin in contrast, operate with a principle of finite supply and scarcity, which makes them function like acceptable Sharia commodities like Gold or Salt. From a Sharia point of view therefore, it makes sense to encourage the growth of a financial system that does not depend on usury.
In April 2018, CCN reported that Mufti Muhammad Abu Bakar, a prominent Islamic scholar in Jakarta, Indonesia declared that bitcoin is Sharia-compliant, and as such can be used by Muslims.
From a practical point of view, the move also potentially opens the cryptocurrency space to a global market of over 1.8 billion Muslims, many of whom have refrained from taking part in the sector until now due to theological ambiguity.
The announcement states that FICE will provide them with a reliable crypto trading platform that eventually aims to become a universal solution for the involvement of Muslims and users of Islamic finance models in the crypto market. FICE will also be open to all users regardless of religion.
Adab Solutions is preparing to launch the project ICO in September, and the company has revealed that tokens bought in the ICO will be used as utility keys to access the exchange platform’s services. It also revealed that all commissions within the FICE will be paid exclusively in Adab tokens.
Speaking about the upcoming ICO, Founder and CEO of ADAB Solutions, Timur Turzhan said:
“Ideas that correspond to the norms of the Shariah are based on the understandable material value, have a clear business strategy, and this allows us to confidently assert that halal projects are incomparably safer more successful than the beautiful signs of many cryptocurrency initiatives. By investing in FICE, you will not only support the needed and well-timed project for the Islamic Ummah of the whole world, but also make a valuable acquisition that can bring a decent profit. Our team is dedicated to its business and will do its best to achieve all the goals set.”