HalalDEX, Decentralized Exchange based in Singapore, issued a Shariah Compliant certificate to KitToken on 22 November 2018. KitToken sets to use the compliance certificate as a way to expand the usage of the token in major Muslim economies in the world.
The certificate will also be a significant boost to the KitToken since now Muslim investors have confidence in it because it has no signs of being Haram.
A brief on Shariah Compliant laws on digital assets
Islamic law does not encourage Muslims to engage in any economic activity that involves gambling, selling of alcohol and drugs, interest payments, or any other malicious activity.
In the process of protecting investors from engaging in criminal-related blockchain activities, they have strict laws concerning trading of digital assets like cryptocurrencies. The cryptocurrency under scrutiny must be able to have physical assets, which is also a recommendation within Islamic Finance.
However, with time, the barrier seems to break slowly as more scholars are seeking ways to adapt to new technology.
For instance, in a place like Dubai, they set to create blockchain related services by the end of 2018. Their primary concern is to ensure that the systems comply with the stipulated Shariah laws as the Muslim dominated community engages in the cryptocurrency market.
Should you acquire the certificate from Halal DEX?
HalalDEX, as the name suggests, provides a safe place to trade without fear. As a Shariah law gatekeeper, you are sure that you will transact without any doubts. The exchange focuses on ERC20 tokens, which are Shariah Compliant.
The DS Media Concepts Pte. Ltd runs the exchange in collaboration with a team of Islamic scholars. According to the company, a token will only qualify to trade within the exchange if it can pass various evaluation based on Shariah Law.
After a token receives the certificate, it is the work of the issuer to act according to the Shariah adviser.
For more information on the issuance of Shariah Compliance Certificate, be sure to contact DS Media Concepts Pte. Ltd.