After successfully getting Islamic certification for its digital currency from Islamic scholars, the Swiss crypto firm X8 AG is now planning to expand its business into the Middle East region by opening up a crypto exchange.
What is the certification all about?
The certification granted to X8 AG is received by businesses when they are considered Sharia compliant. With officials seeking to innovate the war torn Middle East, financial companies are making a beeline to provide monetary services to such regions.
Blockchain has stirred a revolution on a global stage and cryptocurrencies are starting to become mainstream, therefore it is critical that the Middle East does not get left behind in the race for revolutionised economies that are based on cryptocurrencies. However, the price volatility, digital crimes, and money laundering cases have led to the involvement of Islamic scholars in crypto businesses. Sharia certification will ensure that the assets of the investors are kept safe.
Certification granted by the Shariyah Review Board
Crypto firm X8 AG has received its certification from the Shariyah Review Board, which is a consulting firm licensed by the Central Bank of Bahrain. The acceptance by the Shariyah has made the Swiss firm hopeful that it will be able to provide the citizens of the region with convenient access to digital currency.
X8’s Ethereum-based cryptocurrency is backed by 8 fiat currencies as well as gold. The Co-Founder of X8, Francesca Greco, was quoted as saying:
“The Gulf region is a really good place for financial technology companies because they all want to become hubs for fintech.”
Middle East welcomes crypto
Greco went to on elaborate that X8 is looking to base its Middle East headquarters somewhere in the region. They are also on the lookout for developing a crypto exchange that is compliant with Islamic laws. Even though there have been a lot of discussions around the validity of crypto in the Islamic world, the debate has now thinned with many scholars accepting that the transfer of cryptos is comparable to the transfer of rights, which is an acceptable practise in Islam.
Did you also know, Stellar is Sharia-compliant?