Baybit Eyes is a Sharia-compliant crypto account for Muslim investors
Crypto exchange Bybit has announced the launch of new Sharia or Islamic law compliant products designed specifically to meet the needs of Muslim investors.
On September 24, Ben Zhou, the founder and CEO of Baybit, announced the launch of the Crypto Islamic account on the trading platform X. This includes access to spot trading of Sharia-compliant tokens, the Dollar-Cost Averaging (DCA) bot and the Spot Grid bot.
Source: Ben Zhou
According to Baybit, the Islamic account respects the principles of the religion, allowing investors to trade “without affecting” their faith. He said the products were developed in consultation with Malaysia-based Islamic law consultancy firm Zico Shariah.
How crypto assets comply with Islamic law
The Islamic financial system is based on the principles of “Sharia” or Islamic law. One of the laws prohibits paying interest on loans, emphasizing fair and ethical financial transactions.
Instead of interest, Islamic finance is based on the sharing of losses and profits between borrowers and lenders. Here, borrowers and lenders share investment risks, profits and losses.
Products and services in Islamic finance. Source: Cointelegraph
The law allows investing in items such as stocks, bonds and digital assets such as crypto. However, these cryptocurrencies must be in line with the principles of Islamic finance.
To be compliant, crypto assets must be based on a profit and loss sharing system. This means that investors share in the profits and losses of the business rather than receiving a fixed return on investment.
Once issued, a regulatory board must review and validate the tokens before Muslim investors can start buying them. The certification process usually involves evaluating the features and overall design of the tokens.
Related: Hashgraph Association with Qatari Stakeholders to Explore Digital Asset Usage Issues
Baybit confirms Dubai license
The launch of the new Sharia-compliant product coincides with Baybit being licensed in the United Arab Emirates, a country where Islam is the official religion.
On September 16, the exchange received a temporary license in Dubai, United Arab Emirates. Dubai's crypto regulator, the Virtual Asset Regulatory Authority (VARA), has granted BiBit a non-operating license two years after establishing its headquarters in the emirate.
Such a temporary license will be activated after the crypto exchange meets certain requirements set by VARA.
Helen Liu, chief operating officer of BayBit, said Dubai's location, policy and environment offer many opportunities for crypto businesses and investors.
Magazine: Ten years later Ethereum ICO: Blockchain forensics ends the double spending debate
