The Muslim world lives by different financial doctrines that for a long time alienated it from conventional finance industry. The same is true regarding the nascent cryptocurrency industry. However, ADAB Solutions will launch First Islamic Crypto Exchange (FICE) to connect the Muslim world to the new asset class.
According to Sharia law, one transgresses by dabbling in speculative activities. Interestingly, most of the existing cryptocurrency activities are speculative in nature. Therefore, FICE will endeavor to offer services in alternative digital assets that lack the speculative characteristics.
The first Islamic cryptocurrency exchange to incorporate two departments in its structure
Towards this end, the crypto exchange will incorporate a special department that will vet cryptocurrencies before listing. The Department of Islamic Finance will determine the criteria for listing cryptocurrencies. Further, there will be the Shariah Advisory Board that will give guidance in regard to specific stipulation of the law. The Board will guide on how the stipulations affect the cryptos included on the platform.
In essence, the two boards will work together to ensure that only “halal” coins make it to the exchange. As Coin Shark explains, halal coins do not have any associations with drugs and alcohol. Further, a coin associated with a scam or a ponzi scheme is definitely not halal and will not feature on FICE. Other characteristics that will bar cryptos from listing on FICE include gambling, indecent behaviour and of course speculation.
Global sharia-compliant infrastructure
Interestingly, the first Islamic cryptocurrency exchange will incorporate all necessary components of an exchange. These include an in-built digital wallet that will facilitate faster transfer of assets. Further, FICE will incorporate analytical tools and options to withdraw and deposit currency. Interestingly, the exchange will support both crypto and fiat currency. The exchange also has the necessary security features for crypto exchanges.
According to their LinkedIn profile, ADAB Solutions is a project aiming at creating global sharia-compliant financial infrastructure. In the FICE project, ADAB expects to achieve US$146 million in daily trading and US$4.4 billion monthly turnover by 2020. The exchange will launch in the opening months of 2019.