June 23, 2024

UAE Has Its First Sharia Compliant Crypto Exchange: Adab Solutions

The United Arab Emirates is getting its first Sharia-compliant crypto exchange. Adab Solutions, a Crypto exchange startup is marketing itself after the launch as the First Islamic Sharia Exchange (FICE).

Adab Is Targeting The Huge Market Niche

Islam is a religion with about 1.8 million people according to Adab statistics. Secondly, the Islamic financial assets have a market capitalization of over $2 trillion. This value is expected to grow by 12% on each year in the foreseeable future. Additionally, the growth of Crypto investments in the Muslim community is 270%. The Blockchain is hoping to give all these people a platform to carry out their transactions without breaking their religious rules.

The above statistics could have been better should there be a Blockchain platform that assures pious Muslims that Crypto trading is not sinful. Therefore, the Adab solutions will be a one-stop shop that is certified by the UAE authorities as an assurance to Muslims that they can still trade in Cryptos and be compliant with Islam.

A Common Ground For Crypto And Islam

Adab Solutions will be subjected to strict regulations from the Sharia Advisory Board (SAB). The team is made up of Sharia experts whose jurisdiction is International and whose qualifications and credibility is accepted across the Gulf Countries and the Islamic world at large.

The Blockchain platform has a mission of ensuring that there is an enhanced quality of Crypto services on the platform that will attract Islamic Cryptocurrencies, investors and traders.

In the ideal case, the Crypto exchange is congruent with the Islamic financial transactions of fairness and transparency. This is because of the fact that the Cryptocurrencies are anchored on decentralized Blockchain that cannot be manipulated by any party. Additionally, the increase in the value of digital coins benefits everyone other than the Blockchain owners.

However, some Islamic factions’ frown upon the Crypto exchange transactions owing to the factor of fiat money liquidity. In this regard, their disquiet has logic in the fact that exchanging the digital coins to fiat money attracts charges that can be sometimes considered exorbitant, unfair and a form of moneylending. By all means, this is against the tenets of Islamic finance.

The two factors of usury and decentralization confuse most Islamic prospective traders and many of them, therefore, opt to avoid crypto exchanges due to the ambiguity and vagueness of the Blockchain models.

The SAB is aiming to give direction to Adab Solutions flush out the element of moneylending and bring more Muslims on board.

Adab Solutions Is Launching An ICO In September

Timur Turzhan, the Adab Solutions CEO is promising that Adab will be a Blockchain that will have a utility token for on-platform transactions. Speaking during the press conference, he assured the Muslim Ummah that their religious standards will be upheld in all ways.

The Crypto Exchange Is Modeled As An Islamic Market Place

Adab Solutions treats the Digital coins as products whose value is dependent on forces of demand and supply. This is, by all means, Sharia compliant.

The Bitcoin was Declared as Sharia Compliant by Mufti Muhammad Abu Bakar, a Jakarta based Islamic scholar. Therefore, Adab Solutions will be vital for its success as it will provide a liquidity platform.

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