Few Islamic countries are waving with the hype of cryptocurrency and blockchain technology. As such, The United Arab Emirates-based startup company Adab solutions earlier today announced the launch of the First Islamic Crypto Exchange. However, the launch comes with an initial coin offering in September 2018, aims to raise funds for the exchange. The new exchange is to change the perception of cryptocurrency within the Islamic world.
Adab Crypto Exchange to be run on Sharia Law
The community revealed that the exchange would run with 100 percent compliance with the sharia law. FICE will create a global infrastructure that operates on the principles of Islamic finance and the community. Since that regulates the development of Islamic crypto-economics.
According to Adab, FICE designed to solve the problem of halal cryptocurrency transactions. It will also provide entry into the market space for Muslim Ummah. The Muslim Ummah comprises more than 22 percent of the world’s population and controls Islamic financial assets worth over $3.8 trillion. FICE wants to present its self as an Islamic Cryptocurrency Exchange.
FICE revealed that it is committed to adhering to the high moral requirements set forth by the Sharia community. The platform will establish an in-house sharia Advisory Board (SAB) to ensure that Islam is included in the global cryptocurrency market. According to Adab, SAB will be an independent body comprising of internationally recognized sharia experts. However, it is to provide input and guidance on all sharia matters within the organization.
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Why a Sharia Compliance Exchange?
Islamic civilization is a little different from that of the other liberal nations of the world. Islamic finance management and what is accepted and not acceptable are all different. To some Islam sharia law, a set of idealization set forth by Islamic founders is the right way the world is to be governed. Sharia law has rules governing all ways of life ranging from the way of life to finance and administration.
The company said, being the first Islamic Crypto Exchange it would only list projects that considered halal (acceptable) by the in-house Sharia Advisory Board. Projects labeled haram (Forbidden) will not appear on the exchange’s list. To be more specific about what is accepted or not accepted, the company gave a list of tokens they would reject.
The exchange will not list Gambling Tokens, Usury, Immoral services and Production of Alcoholic beverages and Tabacco Products. Also financial pyramid schemes like that orchestrated by the famous Russian fraudster Sergio Mavrodi. The company plans to launch its own ICO next month for the platforms native token, ADAB.
A sharia abiding cryptocurrency Exchange might not be all that the crypto market needs or of any significant benefit to the Islamic crypto community. However, Adab’s move for the development of FICE could be a mere marketing strategy aim. Therefore to gain an upper hand from the Islamic community.