Bybit has launched a new crypto account specifically designed for Muslim investors, following Islamic law, known as a crypto-Islamic account. This account allows users to trade cryptocurrencies while adhering to Sharia principles. It offers options like spot trading and automated trading bots, ensuring that all transactions comply with Islamic finance rules.
“World first Crypto Islamic account is now fully live on Bybit,” Ben Zhou, the co-founder and CEO of Bybit said. “Shariah-Compliant and Initial offerings include spot trading (limited to 75 Shariah-compliant tokens), DCA trading bot, and Spot Grid Bot.”
Bybit worked with experts from ZICO Shariah Advisory Services to ensure that their offerings align with Islamic guidelines, which prohibit interest and emphasize fair profit-sharing. ZICO Shariah Advisory Services is a company based in Malaysia that provides guidance on Islamic finance. It is part of ZICO Holdings and is registered with the Securities Commission Malaysia to advise on various financial products, including sukuk (Islamic bonds) and Islamic funds.
This program was designed to help Muslim investors trade cryptocurrencies in alignment with their religious beliefs. Bybit’s efforts are crucial as they reach out to more Muslim investors, particularly from the Middle East, offering them investment options they can trust.
Sharia-compliant finance operates under principles that dictate how money should be managed and invested according to Islamic teachings. A key principle is the prohibition of riba, or interest, which means earning money from lending is not allowed. Instead, financial transactions should involve sharing profits and losses, ensuring that both parties take on some risk.
Another important principle is avoiding “gharar,” which refers to excessive uncertainty or ambiguity in contracts. All terms must be clear, and both parties should understand the risks involved.
Sharia law intersects with cryptocurrency in discussions about whether digital assets are permissible (halal) under Islamic principles. Some scholars argue that cryptocurrencies are halal because they can be treated as assets of value and do not inherently involve interest, which is prohibited in Islam.
They emphasize that as long as cryptocurrencies do not support unethical activities and adhere to principles like profit-sharing and risk-sharing, they can be acceptable for Muslim investors.
While Bybit is the first major exchange to launch this, other crypto projects and firms have been built on Islamic principles. Examples include OneGram, a gold-backed cryptocurrency; Islamic Coin, which aims to create a digital currency based on Islamic laws; Halal Chain, a platform focused on developing a blockchain ecosystem for Halal products; Bismillah Coin, designed for Muslim investors; and the Yada blockchain platform, which connects Muslim businesses.
