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

The seventh-largest cryptocurrency by market cap, Stellar, gained global traction as a unique, decentralized value exchange protocol. Announced July 17, 2018, Stellar is the first cryptocurrency to receive Sharia compliance certification and integrate with Middle Eastern financial firms.

Sharia Compliance, Middle East Welcomes Cryptocurrency

Through its open-source network, Stellar aims to provide global access to basic value exchange services. On July 17, the Stellar network and technology announced that they are now permitted to service financial institutions that require compliance with Islamic financing principles.

After reviewing their application, the Shariyah Review Bureau approved financial applications of Stellar – marking a milestone in their mission to achieve global financial access. The Shariyah Review Bureau is a leading international Sharia advisory agency licensed by the Central Bank of Bahrain.

Through its recently obtained Sharia certification, the Stellar distributed ledger technology (DLT) protocol is the first to gain access to the money transfer and asset tokenization space within countries in 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.

Although partnerships with Islamic financial institutions were not mentioned, Stellar released plans to enter the Middle East and offer its low-cost financial services to a diverse client base abroad.

“In the next few months, members of the Stellar Development Foundation will meet with global financial institutions and engage them on how to best utilize Stellar in their Sharia-compliant financial services and products. We’re excited to add even greater diversity and inclusion into the Stellar ecosystem.”

Stellar | XLM

Updated: Nov 7 at 2:15 am UTC

Stellar, currently ranked #6 by market cap, is up 21.78% over the past 24 hours. XLM has a market cap of $5.33B with a 24 hour volume of $90.59M.

Chart by CryptoCompare

Stellar is up 21.78% over the past 24 hours.

Cover Photo by Florian Wehde on Unsplash

Posted In: , Adoption, Price Watch, Regulation
Invest with AMFEIX

Like what you see? Subscribe to CryptoSlate

Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.

Sign up to stay informed
Jonathan Kim

Jonathan Kim

Former Journalist @ CryptoSlate

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.