Renowned cryptocurrency trading platform, Bybit has launched new products that are compliant with Islamic law (Shariah). The new initiative became known on Tuesday after Bybit Co-founder and CEO, Ben Zhao revealed via a post on X that the exchange launched a crypto-Islamic account.
According to the post, the product is designed specifically for Muslim investors, as part of the initiative, Bybit also launched a dashboard that will permit access to spot trading of Shariah-compliant tokens.
Also, the exchange released its 1-dollar l-cost averaging (DCA) bot and spot grid bot. Meanwhile, the new Islamic law-compliant crypto products will offer virtual assets that operate on the profit-and-loss sharing system.
With this system, investors will receive returns based on the business’s gains and losses instead of receiving a fixed price on their investment. Once Bybit avails this investment opportunity, a supervisory board will help review the tokens to indicate if they are good enough for Muslim investors.
In most cases, the board often uses the fundamentals and features of the token to determine if they are Shariah-compliant. Don’t forget that the Islamic finance system operates on Shariah law.
As one of its guidelines, Islamic law kicks against paying or attaching interest to loans which illustrates how the system encourages equitable and ethical transactions. While the system doesn’t encourage interest payment, Islamic law supports borrowers and lenders to settle their differences through loss and profit-sharing styles.
More so, for Muslim investors the law is also applicable to investments like stocks, bonds, and cryptocurrencies. Consequently, all of these investment options must be compliant with Islamic law before Muslim investors can invest in them.
How the Initiative Will Help Enhance the Market Share of Bybit in the Middle East
However, the introduction of the new Islamic law-compliant investment option will further boost the popularity of Bybit in the Middle East. To an extent, the initiative will help improve the adoption of cryptocurrency in the region due to the wide acceptance of the Islamic religion among residents.
Recently, Bybit obtained a license from the United Arab Emirates after setting up its headquarters in the Emirates for more than two years. It is worth mentioning that the United Arab Emirates is another country with Islam as its official religion.
The Virtual Asset Regulatory Authority (VARA), the foremost regulator in the country, gave Bybit a non-operational license. To activate the license, Bybit must meet certain criteria stipulated by VARA.
According to Coinmarketcap, Bybit is the fourth largest cryptocurrency exchange by trading volume behind Binance, Coinbase, and OKX.
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