Bybit announces a Shariah-compliant crypto account aimed at Muslim investors looking for investment opportunities that adhere to Islamic financial rules.
Crypto exchange Bybit has introduced new products that align with Shariah, or Islamic law, specifically designed to cater to Muslim investors.
On September 24, Bybit co-founder and CEO Ben Zhou announced on X the launch of a Crypto Islamic account.
This account provides access to Shariah-compliant token spot trading, a dollar-cost averaging (DCA) bot, and a spot grid bot.
Bybit stated that the Islamic account follows religious principles, enabling investors to trade “without compromising” their faith.
The exchange developed these products in collaboration with Zico Shariah, a Malaysia-based advisory firm specializing in Islamic law.
How Crypto Assets Align with Islamic Law
Islamic finance operates according to the principles of Shariah, which prohibits charging or paying interest on loans and emphasizes ethical and fair financial transactions.
Instead of interest, Islamic finance relies on profit-and-loss sharing agreements between lenders and borrowers. Both parties share the risks, profits, and losses of investments.
Shariah law permits investments in assets like stocks, bonds, and cryptocurrencies, but digital assets must adhere to Islamic finance principles.
To be Shariah-compliant, crypto assets must follow a profit-and-loss sharing model, meaning investors share in a business’s profits and losses rather than receiving a fixed return.
Before Muslim investors can purchase these tokens, a supervisory board must review and certify them.
The certification process includes a detailed examination of the tokens’ features and design.
Bybit Secures License in Dubai
The launch of Shariah-compliant products coincides with Bybit securing a license in the United Arab Emirates, where Islam is the official religion.
On September 16, Bybit acquired a provisional license in Dubai, a key city in the UAE. The Virtual Asset Regulatory Authority (VARA), Dubai’s crypto regulator, granted the exchange a non-operational license two years after establishing its emirate headquarters.
This provisional license will become fully operational once Bybit meets the requirements set by VARA.
Bybit’s COO, Helen Liu, emphasized that Dubai’s strategic location, policies, and favorable environment offer substantial opportunities for crypto businesses and investors.
