As cryptocurrency adoption continues to gain ground in Muslim nations of the Middle East, another cryptocurrency exchange is positioning itself to cater to this growing market by turning its operations Shariah compliant.
Estonia-registered Beldex Exchange announced that it is seeking to align its operations with Shariah principles as part of its global growth strategy.
“Beldex is in the process of consulting with learned scholars of Islamic law and has put plans in motion to find ways to implement the Shariah law to make crypto Halal,” the exchange confirmed.
Leading up to getting the Shariah integrity of its business model and operations verified, the digital asset exchange claims to be avoiding business activities associated with Maysir, by banning projects connected to gambling from being listed onto its platform; Riba by removing any “unreasonably high” interest; Haram goods as businesses dealing with alcohol and tobacco will not be entertained; pyramid schemes; and unethical services. It also eliminates Gharar by using the Mudarabah model.
“It is important to us that the usage of our services does not create a conflict of interest or hamper the moral, religious and legal principles of all individuals, since Beldex caters, equally and without bias, to a global audience. Precisely, for this reason, Beldex is looking to get its hybrid cryptocurrency exchange compliant with the Shariah law. Moreover, in countries such as Indonesia, India and Bangladesh that have huge Muslim populations, it becomes increasingly difficult to operate an exchange that the community considers Haram,” Beldex explained.
Beldex joins a growing community of Shariah compliant digital asset exchanges. In August, Bahrain-based Rain, which is certified Shariah compliant by scholars, was granted a Crypto Asset Module license by the Central Bank of Bahrain and subsequently closed a US$2.5 million seed round. In the UAE, blockchain firm ADAB Solutions is working on introducing its First Islamic Crypto Exchange.
Apart from the growing Islamic crypto movement in the Middle East, Beldex’s decision to become Muslim-friendly perhaps doesn’t come as a surprise considering that the top management of the platform are from Malaysia, where Islamic finance is widely practiced and heavily promoted.