As a researcher with a keen interest in both finance and Islamic law, I find this development by Bybit truly remarkable. Having worked extensively in the Middle East and having had the opportunity to delve into the intricacies of Shariah-compliant finance, I am particularly impressed by Bybit’s commitment to catering to a diverse group of investors.
As a crypto enthusiast who adheres to Islamic financial principles, I’m thrilled about the recent introduction of crypto products by Bybit, a leading digital asset exchange. These innovative offerings are tailored to comply with Shariah regulations, making them an excellent choice for Muslim investors like myself.
2024 marks the date when Ben Zhou, co-founder and CEO, unveiled a new Islamic account designed specifically for our platform. This special account will enable users to trade Shariah-compliant tokens, utilize automated trading tools such as a Dollar-Cost Averaging (DCA) bot and a spot grid bot.
These tools have been created with the purpose of enabling users to make investments in accordance with the moral and faith-based principles outlined in Islamic jurisprudence.
To ensure adherence, Bybit collaborated with Zico Shariah, a Malaysian advisory firm specializing in Islamic finance. This collaboration enables Bybit to create products that strictly follow the rules set by Shariah law, which regulates acceptable investments and trade activities for Muslim communities.
This account provides an opportunity for faithful investors to interact with the cryptocurrency market, steering clear of interest-driven trades and emphasizing openness in all transactions.
In the Islamic financial system, transactions are based upon the moral guidelines set by “Shariah,” which is Islamic law. A key principle in this system is the prohibition of charging or receiving interest on loans, emphasizing fair and ethical monetary exchanges. Unlike traditional banking methods, Islamic finance utilizes profit-and-loss sharing arrangements between lenders and borrowers, where both parties share the risks, rewards, and potential losses of an investment.
Islamic finance permits investments in stocks, bonds, and digital currencies like cryptocurrency, but they must follow Shariah guidelines. To be considered legitimate, cryptocurrencies should employ a profit-and-loss sharing model where investors share both profits and losses, rather than receiving a fixed return.
Prior to Muslim investors purchasing these assets, a particular board examines and endorses the tokens to confirm they adhere to Islamic standards. This procedure assesses the token’s characteristics and functioning to guarantee compliance with the regulations.
Bybit’s introduction of Shariah-compatible services follows its latest procurement of a preliminary license in Dubai, which was approved by the Virtual Asset Regulatory Authority (VARA) on September 16.
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2024-09-24 19:18