Sharia compliance with crypto and blockchain now a reality

January 30, 2019 9:43 am

Islamic review boards are stamping their approval on more and more digital money and blockchain projects.

Bahrain Rain 

Rain, a Bahrain based cryptocurrency exchange operating out of the Regulatory Sandbox, has recently announced its successful Shari’a compliance certification completed by Shariyah Review Bureau (“SRB”).

SRB is licensed by the Central Bank of Bahrain as a Shari’a Advisory firm authorized to issue Shari’a compliance certifications.

Rain is targeting a 2019 launch

SRB has reviewed Rain’s brokerage service and has determined that the sale, purchase and custodian activities of Rain are in compliance with Shari’a principles.

The Shari’a certification covers a suite of three cryptocurrencies (bitcoin, ethereum, and litecoin). Rain expects to enable top-tier family offices, sophisticated investors and Islamic institutional investors to buy, sell and store cryptocurrency in a Shari’a compliant way.

Rain was founded in 2016 by four entrepreneurs Yehia Badawy, Abdullah Almoaiqel, AJ Nelson and Joseph Dallago. They shared a joint vision to create a fully Shari’a compliant exchange to provide trust for local cryptocurrency traders.

Shariyah Review Bureau has been expanding its position in the world of fintech by advising clients like Stellar, X8 Currency, Ovamba, and Beehive.

Rain is a cryptocurrency exchange focused on serving the Middle East, headquartered in Bahrain and founded by four experts in cryptocurrency from the Middle East and the Silicon Valley.

Crude awakening: PermianChain

Permian Holding announced that it has received Sharia Certification from the Shariyah Review Bureau (SRB).

Permian Holding is set to monetize oil assets via PermianChain Technologies, its blockchain-based start-up and the move to ensure Sharia compliance means that it will be able to broaden its pool of potential investors.

Permian Holding invests in the acquisition of proven oil reserves to generate revenues for suppliers and reduce the administrative costs that can discourage investors from involving themselves in the process.

Permian Holding has engaged the Shariyah Review Bureau to ensure that all its developmental activities from tokenization to acquisitions, including the ability to monetize proven reserves, are executed in a Sharia-compliant manner.

“We are offering a Platform-as-a-Service (PaaS) that helps solve the working capital requirements of oil exploration and production companies while allowing investors equity benefits from the value of proven reserves,” said Mohamed El Masri, Director of Permian Holding and Co-Founder and CEO at PermianChain Technologies.

PermianChain’s unique listing process will be available for mainly upstream businesses or public entities with proven reserves and existing oil campaigns. The reserves, once produced, will be sold to midstream companies on the PermianChain’s closed-loopB2B-exchange.

Yasser S. Dahlawi, CEO of SRB stated, “With only a few weeks until PermianChain’s blockchain platform goes live, we look forward to helping ensure that all issued tokens, proven oil reserves, equity crowdfunding, income generation, and related activities are compliant with Sharia principles.”

Noorcoin to see the light

Noorcoin, a Sharia-compliant crypto token, and platform will launch in Q1 of 2019.

Built on the Zilliqa blockchain platform, headquartered in Singapore, Noorcoin is using a new blockchain protocol that is designed to scale securely in an open, permission-less distributed network.

Saudi will launch the coin’s ICO next April, according to Ambassador of the Kingdom of Saudi Arabia to Indonesia, Osamh Mohammed Abdullah Shuibi.

Noorcoin with its advanced technology could impact not only 30 million visitors at Hajj and Umrah but also 1.8 billion Muslims around the world.

Adab solutions, X8 make presence felt

UAE-based Adab Solutions last year announced the First Islamic Crypto Exchange (FICE). The Shariah-compliant crypto exchange will be adhering to the high moral requirements set forth by the Shariah community.

Adab Solutions said that they are “providing access to the cryptocurrency market for the Muslim Ummah, which accounts for 22% of the world’s population and manages Islamic financial assets with a projected volume of $3.8 trillion.”

CCN reported that Swiss financial technology firm X8 AG becoming certified by Islamic scholars for its digital currency, a certification that will be necessary to accommodate the company’s planned expansion into the Middle East.

X8’s Ethereum-based cryptocurrency is backed by a basket of eight fiat currencies and gold, which helps the requirements for currency in terms of being backed by commodities or resources deemed to be inherently valuable.

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Hadi Khatib
By Hadi Khatib
Hadi Khatib is a business editor with more than 15 years' experience delivering news and copy of relevance to a wide range of audiences. If newsworthy and actionable, you will find this editor interested in hearing about your sector developments and writing about it.