- Bybit has launched Shariah-compliant crypto trading accounts, catering to Islamic investors
- The account complies with Islamic finance principles, prohibiting interest-based transactions and excessive speculation
- Bybit obtained certification from a recognized Shariah advisory firm, ensuring that its services meet Islamic financial standards
Bybit has become the first major cryptocurrency exchange to offer a Shariah-compliant trading account. The new offering is tailored to meet the needs of Muslim investors by adhering to the key principles of Islamic finance, including the prohibition of riba (interest) and gharar (excessive uncertainty). This innovation positions Bybit as a pioneer in providing faith-based financial solutions in the crypto space, opening crypto trading up to the world’s 1.8 billion Muslims, although it isn’t the first in the world to do so.
Sharia Law Prohibits Certain Investing Facets
A Shariah-compliant exchange differs from conventional crypto platforms by avoiding elements forbidden under Islamic law, such as speculative trading and interest-bearing transactions. In this case, Bybit has ensured that its crypto trading practices, including leverage and staking options, are devoid of any form of interest or excessive risk.
The rules align with the tenets of Shariah, which emphasize fairness and ethical investing, as Bybit co-founder and CEO Ben Zhou indicated:
World first Crypto Islamic account is now fully live on Bybit. Shariah-Compliant and Initial offerings include spot trading (limited to 75 Shariah-compliant tokens), DCA trading bot, and Spot Grid Bot.
Create your Islamic Sub-account now: https://t.co/BxLk8GR2N8 pic.twitter.com/ztz2RLDweJ— Ben Zhou (@benBybit) September 24, 2024
As well as compliance with Sharia law, the platform also emphasizes transparency, allowing users to access real-time data and prices, which reduces uncertainty in transactions.
Not the World’s First
To ensure compliance, Bybit worked with a certified Shariah advisory firm, which rigorously audited its operations and trading practices. The advisory board confirmed that Bybit’s offering meets the ethical guidelines established in Islamic finance.
This certification is crucial, as it provides Muslim investors with the confidence to engage in cryptocurrency trading without compromising their religious beliefs.
The launch is likely to attract Muslim investors worldwide, setting a new benchmark for ethical crypto trading. However, it is not, as Bybit suggests, the world’s first Sharia law-compliant exchange: Bahrain-backed Rain opened its doors in 2019, offering six trading pairs.
