UAE-based financial services firm ADAB Solutions has announced plans to launch the world’s first Shariah-compliant cryptocurrency exchange.
The platform, called the First Islamic Crypto Exchange (FICE), will target the 1.8-billion Muslim community worldwide, while operating globally and being available to all users, regardless of their religion.
FICE can process up to 3 million inquiries per second, making it one of the quickest crypto exchanges, Md Mofassair Hossain, a marketing advisor at ADAB, claimed in a blog post on Monday. Commission fee for the currency exchange will be fixed at 0.05%-0.2% per deal.
The exchange will support the cryptocurrency trading pairs of Bitcoin (BTC) and Ethereum Classic (ETC), as well as other cryptocurrencies, approved by ADAB’s Advisory Board of Islamic Finances. The Shariah experts will be tasked with complying with the principles of the Islamic legislation, which is derived from the religious teachings of the Holy Quran.
“Many cryptocurrencies, due to their characteristics, are haram (forbidden in Islam). Today, no one can guarantee that the coins and projects listed on conventional cryptocurrency exchanges comply with the norms of Islam,” ADAB’s official website states.
In order to offer crypto-related services that are “halal”, or permissible in Islam, ADAB Solutions will not be involved in digital currency projects related to gambling, betting, usury and other “immoral services”. Additionally, FICE will not be associated with any business involved with the production of alcoholic beverages and tobacco products.
“These restrictions are not enforced only for religious reasons, they also exclude the appearance of low-quality assets on the exchange,” ADAB clarifies.
According to the the company’s estimates, FICE will be handling a projected volume of daily cryptocurrency trading of $146 million. The Islamic exchange also expects a “monthly turnover of $4.4 billion” during the first 18 months of its operations.
ADAB Solutions will also be introducing its own crypto token called ADAB and advertised as “the only cryptocurrency, which can be used to pay for commission and services within the project”. Its initial coin offering (ICO) is set to launch in early September.