Announcing CryptoSlate Research — gain an analytical edge with in-depth crypto insight. Learn more.

Adab Solutions Launches First Islamic Crypto Exchange

Adab Solutions Launches First Islamic Crypto Exchange

With adoption increasing worldwide, cryptocurrency is making its way into the mainstream. The United Arab Emirates (UAE) is the latest country to join the movement, as Adab Solutions launches the first-ever Sharia-compliant cryptocurrency exchange.

Growing Popularity of Crypto in Islam

UAE-based startup Adab Solutions is set to launch the First Islamic Crypto Exchange (FICE) compliant with Sharia law, reports Trade Arabia.

To maintain compliance with Sharia law during operation, Adab Solutions will consult with an in-house Sharia Advisory Board (SAB) comprised of internationally-renowned Sharia experts.

Given its finite supply and frictionless transferability, cryptocurrency is seemingly a fitting asset class in compliance with the tenets of Islamic law, which denounces financial systems that depend on usury.

In a press release, Timu Turzhan, CEO and founder of Adab Solutions, said:

“Ideas that correspond to the norms of the Shariah are based on the understandable material value, have a clear business strategy, and this allows us to confidently assert that halal projects are incomparably safer more successful than the beautiful signs of many cryptocurrency initiatives… Our team is dedicated to its business and will do its best to achieve all the goals set.”

Related: Saudi Arabia Officials: Cryptocurrency Trading Illegal

The company will launch its initial coin offering (ICO) for Adab tokens in Septemeber.

Adab tokens will function as utility keys that unlock the trading platform and act as the default payment method for commissions paid on the exchange.

Through the FICE launch, over 1.8 billion Muslims will potentially have access to Sharia-compliant cryptocurrency trading services that weren’t available before.

Recently, CryptoSlate reported that Saudi Arabia, a neighboring Islamic country, is prohibiting cryptocurrency trading for domestic residents.

Sharia Compliance Extends to Stellar

Adab Solutions is not the only cryptocurrency to enter the Middle East. On July 17, the Stellar network revealed that it is now permitted to service financial institutions that require compliance with Islamic financing principles.

Related: Stellar Enters the Middle East, Becomes First Cryptocurrency to Gain Sharia Certification

After reviewing their application, the Shariyah Review Bureau approved Stellar’s financial applications and awarded the company an official Sharia certification.

Through the Sharia certification, Stellar became the first distributed ledger technology (DLT) protocol to enter the money transfer and asset tokenization sectors in countries of the Middle East and Southeast Asia.

According to the official press release:

“Islamic financial institutions in the Gulf Cooperation Council (i.e. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE) and parts of Southeast Asia (e.g. Indonesia and Malaysia) will now be able to integrate Stellar technology in their Sharia-compliant product and service offerings. This is a big advancement for the Stellar network given that these regions are endpoints of popular foreign worker remittance corridors.”

The Sharia certification extends to applications and use-cases for Lumens (XLM), Stellar’s native cryptocurrency. By using lumens, users in the Middle East and Southeast Asia will have access to more affordable payment remittance channels when sending money across borders.

Cover Photo by Zoltan Tasi on Unsplash

Filed Under: Adoption, Crypto Exchanges
Jonathan Kim

Jonathan Kim is a University of Washington student of Finance and cryptocurrency investor with a deep interest in the emerging industry of blockchain applications and cryptocurrency trading. His past experiences involve publishing original daily content for blockchain startups and trading cryptocurrencies using technical analysis principles.

View author profile

Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.