Bybit, a leading cryptocurrency exchange, has announced the launch of Shariah-compliant crypto accounts tailored for Muslim investors. This initiative, revealed by co-founder and CEO Ben Zhou on September 24, aims to offer a range of products that align with Islamic finance principles, reports The Crypto Times.
The new accounts will enable users to engage in spot trading of Shariah-compliant tokens, along with automated trading tools such as a dollar-cost averaging (DCA) bot and a spot grid bot. These tools are designed to help investors operate within the ethical and religious guidelines of Islamic law, which prohibits interest-based trading and emphasizes transparency in transactions.
To ensure compliance with Shariah law, Bybit collaborated with Zico Shariah, a Malaysian advisory firm specializing in Islamic finance. This partnership has facilitated the development of products that meet the stringent requirements governing permissible investments for Muslims.
Islamic finance is grounded in principles that forbid interest on loans and advocate for fair financial interactions. It relies on profit-and-loss sharing agreements, where both lenders and borrowers share the risks and rewards of investments. Under these principles, crypto assets can be invested in if they follow a structure that allows for profit and loss sharing, rather than guaranteeing fixed returns.
Before allowing investment, a dedicated board reviews and approves tokens to ensure they meet Islamic guidelines. This review process assesses the features and operational mechanisms of the tokens to confirm their compliance.
The launch of these Shariah-compliant products aligns with Bybit’s recent acquisition of a provisional license in Dubai from the Virtual Asset Regulatory Authority (VARA), granted on September 16.
Bybit’s introduction of Shariah-compliant accounts marks a major step towards inclusivity in the cryptocurrency space, providing Muslim investors with opportunities to participate in the crypto market while adhering to their faith.
