Swiss Crypto Company X8 Gets Islamic Finance Certification
The permit will be the basis for X8’s plans to expand in the Middle East, including the establishment of a local virtual asset exchange.
X8, a Swiss-based crypto project, said on Monday that it had obtained an Islamic finance certification from Shariyah Review Bureau (SRB), an international Sharia advisory agency licensed by the Central Bank of Bahrain. X8 will use the certificate to target investors from the Middle East with a focus on the Gulf region.
SRB conducted a review of X8 network, including its blockchain protocols, X8 cryptocurrency (X8C) and its Ethereum-based X8X utility token (X8X). A religious scholar analyzed X8’s application to see whether it follows the principles of Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI) - an international Islamic body that issues common Sharia standards for accounting, auditing, and management process.
The SRB certificate has several provisions, including Shariah guidelines on possession, purchase, selling, and exchange of cryptocurrencies, and the promise to trade digital coins.
“Moving forward we will work closely with the team at X8 to ensure that they have access to the levels of expertise required for attaining Sharia compliance in their business facilities,” Yasser S. Dahlawi, founder and CEO of SRB, said in a press release.
The SRB certificate is part of the X8 strategy to find new markets for its products. The Zug-based startup wants to open an office in the Middle East and plans to work with a local exchange with the aim to build a cryptocurrency trading platform that is Sharia compliant.
“The Gulf region is a really good place for financial technology companies, because they all want to become hubs for fintech,” Francesca Greco, X8, director and co-founder told Reuters.
Currently, X8 has two main products. The first one is X8C, which is a cryptocurrency that claims to be backed by gold and a basket of eight fiat currencies: US dollar, Canadian dollar, Swiss franc, euro, British pound, Australian dollar, Japanese yen, and New Zealand’s dollar. The company also develops X8X, a utility token for X8C issuance and exchange process.