X8 AG, a Switzerland-based fintech firm, has secured a certification for Sharia compliance, CryptoBlockWire can authoritatively report. Indeed, X8 AG obtained the Islamic certificate from the Shariyah Review Bureau (SRB) for its Ethereum-based stablecoin. Operating in more than twelve countries, SRB is a leading Sharia consulting and auditing firm with the license of the Central Bank of Bahrain.
Moreover, SRB holds the market share of over 13% of Saudi Investment Companies. Needless to say that the Saudi regulator, Capital Markets Authority, licensed Saudi Investment Companies. In addition, SRB controls about 21% of Saudi stock exchange-listed Cooperative Insurance Firms.
Cryptocurrency and the Debate of Sharia Compliance
Undeniably, the debate over Sharia compliance of cryptocurrency has held sway in many Islamic nations. Basically, the argument has been on whether it goes contrary to Islamic prohibition to such monetary speculations or not. Some Islamic clerics have come out to okay cryptocurrencies, hinging their decisions on the “concept of transfer of rights,” which Sharia approves of. While these respectable Islamic clerics have approved of the use of the new asset class, many conservatives, nonetheless, have reservations.
Why is the Compliance Important for X8 AG?
The management of X8 AG plans to expand its operations to the Middle East, making the Sharia-compliant certification a must-have. According to X8’s Cofounder and Director, Francesca Greco, its stablecoin has the backing of seven fiat currencies and gold. Also, Greco pointed out that its stablecoin will douse the fears of Islamic advisers, who often express concerns about cryptocurrency speculation and volatility. Consequently, X8 trading platform, which is still in the works, will be Sharia-compliant.
Greco told Reuters some of the strategies that they have already initiated. Speaking, the X8 founder disclosed that they have met with the local exchanges in Bahrain, Dubai, and Abu Dhabi. On the choice of the Golf region, Greco posited that firm sees the appetite in the region to become a fintech hub, saying that’s why the region is a fertile ground for fintech enterprises.
Sharia Compliance is the In-thing
Of course, X8 AG is not the only company that has made effort to obtain a certification of Sharia compliance. In July, blockchain firm Stellar (XLM) claimed to be the first blockchain to secure Sharia compliance. Cointelgraph reported that the nonprofit received the certification in the field of money transfer and asset tokenization.
However, XLM is not the only cryptocurrency company claiming to be the first to secure the Islamic certification. For instance, in March 2018, digital currency utility token NOORCOIN made a similar pronouncement when it got the certification from World Sharia Advisory Committee.
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