Bybit targets Muslim investors with new Shariah-compliant account, aligning with Islamic finance principles.
Bybit Launches Islamic Crypto Account
Bybit recently launched a Shariah-compliant crypto account designed for Muslim investors seeking options in line with Islamic finance. This announcement came on Sept. 24 through Bybit co-founder and CEO Ben Zhou’s post on X. The crypto exchange aims to provide Muslim investors with access to Shariah-compliant tokens and automated trading bots, such as the dollar-cost averaging (DCA) and spot grid bots.
Tailored Products for Faithful Investors
Bybit created the Islamic account in partnership with Zico Shariah, a Malaysia-based advisory firm. This ensures the account strictly adheres to Islamic principles, allowing users to trade without violating their religious beliefs. The exchange aims to make investing accessible to Muslims while maintaining ethical financial practices.
Understanding Shariah in Islamic Finance
Shariah-compliant financial systems operate under the guidance of Islamic law, emphasizing fairness and ethics. The principles prohibit charging or paying interest, focusing instead on shared risks and rewards between investors. Profit and loss sharing forms the foundation of Islamic finance, where borrowers and lenders work together toward equitable outcomes.
Crypto Must Meet Islamic Standards
In Islamic finance, assets like stocks, bonds, and cryptocurrencies must meet specific guidelines. To ensure compliance, crypto tokens must operate on a profit-and-loss basis. This differs from traditional financial systems, where fixed returns are expected. Before Muslim investors can participate, supervisory boards review and certify the tokens as Shariah-compliant.
Dubai Licensing Boosts Bybit’s Growth
Bybit’s Shariah-compliant launch coincides with securing a Dubai license. On Sept. 16, Dubai’s Virtual Asset Regulatory Authority (VARA) granted Bybit a provisional license. The UAE, where Islam is the official religion, presents significant opportunities to expand its services to Muslim investors.
Dubai: A Strategic Crypto Hub
Helen Liu, Bybit’s Chief Operating Officer, emphasized the strategic benefits of Dubai. Its policies, location, and favorable environment position the emirate as a growing hub for crypto businesses and investors. Bybit’s move to secure a license there strengthens its foothold in the Middle East.
Bybit Poised to Serve Muslim Investors Globally
Bybit’s Islamic crypto account marks a significant step in catering to Muslim investors. By ensuring its products comply with Islamic finance, the exchange opens new opportunities for ethical crypto investing. As Bybit continues expanding its presence, this move highlights its commitment to serving diverse markets while staying true to local cultural and religious practices.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
