UAE crypto firm Adab Solutions has recently announced that they’ll soon begin issuing the First Islamic Crypto Exchange (FICE), the world’s first and only digital currency exchange that has been created to be compliant to Sharia law.
Reports state that a Sharia Advisory Board will be in place within the exchange, consisting of various global experts on Sharia, who’ll make sure that the new exchange always keeps fully compliant to the requirements of Islamic Law always.
The project will essentially serve to “ensure an enhanced quality of assets on an exchange, as well as the enhanced inclusion of Islamic cryptocurrency enthusiasts and traders.”
While many might consider these new developments rather left-oriented, there’s a whole field of compliance between Sharia Law and digital currencies. For instance, the Sharia law states that the established system borrowing and lending reserves that underlies a majority of fiat currencies is to be seen as “usury”, and is illegal by Islam.
Tokens like BTC, on the other hand, work within the idea of limited supply and scarcity, which allows them to work similar to the Sharia commodities such as salt or silver or gold. Therefore, from the point of view of the Sharia Law, it is only logical to back the development of a new system that will not stand to profit out of usury.
Back in April, a well regarded Islamic scholar from Jakarta, Mufti Muhammad Abu Bakar, explained that BTC indeed maintains compliance with Sharia, and therefore can be fully utilised by members of the Islamic faith.
From a market perspective, this new development potentially opens up the whole field of digital currencies to an international community of more than 1.8 billion Muslims, a number of whom have kept away from the crypto space due to their religious reasons.
The announcement also says that FICE will offer a secure and transparent trading space for tokens, that essentially aims to ultimately become the worldwide solution for Muslims in the crypto market. The organisation maintains that FICE will be available to everyone despite their religion.