- Islamic Account by Bybit
- Consultations with ZICO Shariah
- Prohibition of Crypto Lending Protocols by Islamic Laws
Leading crypto and derivatives exchange, Bybit launched a rare service in its crypto-Islamic account for Muslim investors. The account facilitates spot trading on 75 Shariah-compliant tokens and two trading bots.
Islamic Account by Bybit
The popular crypto exchange unveiled the Islamic-friendly account for Muslim crypto traders and investors in an X post. The account’s initial offerings will include a spot grid bot and a dollar-cost-averaging (DCA) bot. The account also offers 75 Shariah-compliant tokens for spot trading, which Bybit claims adhere to Shariah laws and ethical Islamic financial principles.
Consultations with ZICO Shariah
Bybit consulted ZICO Shariah, a licensed Shariah consulting and advisory firm based in Kuala Lumpur, Malaysia, for the Islamic principles to set up the accounts. The chief executive officer of Bybit, Ben Zhou, announced the exchange had unveiled the Islamic account.
Prohibition of Crypto Lending Protocols by Islamic Laws
Islamic laws condemn and strictly prohibit any form of usury or interest, often referred to as “Riba” by the community members. Muslim investors cannot use crypto lending platforms or protocols offering similar services to earn interest or usury. According to Islamic Finance Guru, major crypto projects are considered halal (permissible) by Islamic law. These digital assets include Chainlink (LINK), Ripple (XRP), Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Litecoin (LTC), Polkadot (DOT), Bitcoin SV (BSV), and Ether (ETH). Stablecoins such as Tether’s USDT and Circle’s USDC are interest-bearing but can be considered Shariah-compliant if a Muslim investor buys and exchanges the stablecoins with another compliant token, “Riba” does not apply.
The news caused a wave of interest among Bybit’s target audience, Muslim crypto enthusiasts. The Islamic accounts are available worldwide, according to Bybit’s official website. The exchange will not charge any interest on trades or holdings in line with the principle requirements for compliance with Islamic principles of finance.
Comments