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Crypto exchange Bybit has launched new Shariah-compliant products, catering to Muslim investors looking for investments that align with Islamic law.
On Sept. 24, Bybit co-founder and CEO Ben Zhou made the announcement on X, introducing a crypto Islamic account that provides access to specific trading features. These include spot trading for Shariah-compliant tokens, a dollar-cost averaging (DCA) bot, and a spot grid bot.
The Islamic account was developed in collaboration with Zico Shariah, a Malaysia-based advisory firm specializing in Islamic law. The exchange has stated that the products allow investors to engage in trading without violating religious principles, ensuring compliance with Islamic finance's requirements.
Compliance with Islamic Finance Principles
Islamic finance operates on the principles of Shariah law, which prohibits earning or paying interest on loans. Instead, financial transactions in Islamic finance are structured around profit-and-loss sharing agreements. This approach allows borrowers and lenders to share an investment's risks, profits, and losses.
Under these principles, cryptocurrencies can be traded if they comply with Islamic finance rules. Specifically, digital assets must operate on a profit-and-loss sharing model rather than providing a fixed return on investment. Before Muslim investors can trade a cryptocurrency, a supervisory board must review and certify the asset to ensure it adheres to Shariah principles. This involves a comprehensive review of the token's structure and design.
Bybit Receives Dubai License
In addition to launching its Shariah-compliant products, Bybit has secured a provisional license in Dubai, United Arab Emirates. Dubai's Virtual Asset Regulatory Authority (VARA), the crypto regulatory body in the emirate, issued the license on Sept. 16.
The license allows Bybit to operate in Dubai, although it remains non-operational until the exchange meets the regulatory requirements set by VARA. Bybit had previously established its headquarters in Dubai two years ago, and this provisional license is another step in its ongoing efforts to expand in the region.
Bybit's chief operating officer, Helen Liu, has highlighted that Dubai's environment and regulatory framework provide opportunities for crypto businesses. The launch of Shariah-compliant products coincides with Bybit's growing presence in the Middle East, where Islamic finance plays a significant role in investment choices.
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