A United Arab Emirate-based startup has announced the launch of the first-ever Sharia-compliant Islamic crypto exchange named; First Islamic Crypto Exchange (FICE). Undoubtedly, this is history in the making because there hasn’t been any crypto exchange designed to be in compliant with Sharia law which makes this invention a considerable genius.
Cryptocurrency and Islam
Based on the reports by the Trade Arabia, it appears that there is an in-house Sharia Advisory Board (SAB) which comprises of freelance Sharia experts which will be in place in order make sure that the exchange does not fall short of absolute compliance to the provisional principles and dictates of the Sharia law at any point in time. The primary purpose of this project is to suitably;
“Ensure an enhanced quality of assets on exchange, as well as enhanced inclusion of Islamic cryptocurrency enthusiasts and traders.”
Though it might seem absurd to place Sharia law and cryptocurrency side by side at first glance but taking a more in-depth look into the duo would reveal that there is a tremendous amount of synergy between the functions of cryptocurrency and Sharia. It is not strange to see an inquisitive mind ask “How?” it is quite straightforward, the Sharia Law is a functional research lending that underpins most fiat currencies is considered to be usury which Islamic law frowns upon, this is evident in the “modus operandi” of Islamic banks.
Digital Currencies like BTC on the other hand, functions with a principle of finite supply and scarcity, this makes them function like acceptable Sharia commodity like Gold. Coming from a Sharia point of view, it makes more sense to let a financial system which is not dependent on usury thrive in its jurisdiction.
It was reported in April 2018 that a prominent Islamic scholar, Mufti Muhammad Abu Bakar, in Jakarta, Indonesia, stated that owning Bitcoin, as well as other cryptocurrencies, is Sharia-compliant and it would amount to no “haram” if a Muslim acquires crypto assets, trader cryptocurrencies, invest in cryptocurrency or even own a crypto firm.
Based on statistics, this brilliant point of made by the Islamic scholar is one which falls on the right side for digital currency as will expose over 1.8 Muslims(prospective participants)to the “unfair advantages” which the cryptocurrency offers in the world market. This would imply that even the Muslims who have refrained from having anything to do with the sector until this theoretic ambiguity is explained will have to reconsider their prior decision.
The announcement further stated that the FICE would be enabled to provide them with a reliable crypto trading exchange which will eventually become the global solution for the involvement of the Islamic community in cryptocurrency industry. However, controversies of religious sentiments have been nullified as users can trade on the FICE platform regardless of their religious believes or convictions.
The FICE Initial Coin Offering
Adab Solutions has started preparations to launch the project ICO in September this year. The company has also revealed that tokens purchased in the FICE ICO will be used as utility keys to access the exchange platform’s service. In addition to this, it has been stated that all commissions within the FICE will be paid exclusively through Adab tokens. Founder and CEO of ADAB Solutions, Timur Turzhan noted that;
“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.”
Notably, it was recently reported that the UAE planned to create the world’s first blockchain court in the country as it continues the explore versatility of blockchain as its benefits spread into every phase of human society.