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. The account is available worldwide for Muslim investors.
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. Bybit claims these tokens adhere to Shariah laws and ethical Islamic financial principles.
Bybit consults ZICO Shariah to offer crypto-Islamic accounts
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.
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.
–Ben Zhou
Bybit said it launched this account type to fill a gap that hindered Muslim investors from joining the crypto community. The discussion about crypto being haram or halal has continued for years. Some Muslim investors distanced themselves from the industry due to a lack of clarity.
The industry is often classified on the same grounds as gambling, which is heavily condemned by Islamic laws. However, Bybit’s move to unveil Sharia-compliant crypto products could fill that gap and facilitate the entry of Muslim investors into the crypto space.
Islamic laws condemn crypto lending protocols
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. One particular X user commented on Zhou’s announcement post, stating that the reform was a big achievement for the exchange. The user indicated that Bybit’s Islamic accounts are a gateway to new opportunities for the Islamic finance community.
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. Bybit intends to comply with Shariah laws by preventing asset mixing and providing a direct fee structure in line with ethical financial activities.
Source: https://www.cryptopolitan.com/bybit-crypto-islamic-accounts-for-muslim/