X8 AG, a Switzerland-based fintech firm, has reportedly been certified by Islamic scholars to offer its cryptocurrency as a form of investment to Muslim investors.
Cryptoasset Receives Certification From Islamic Scholars
X8 AG received certification for its cryptoasset and its other financial products from the Shariyah Review Bureau (SRB), a Bahrain-based Islamic advisory firm.
According to a senior executive at X8 AG, the company is planning to expand its operations to cover the Middle East region and other Islamic countries. The Swiss financial firm is also planning to launch a Shariah-compliant digital asset exchange.
X8 AG’s digital currency has been developed on the Ethereum blockchain, and its creators claim that it’s backed by 8 major fiat currencies, gold, and the “best-in-class’ risk management tools.
"Financial Artificial Intelligence"
Moreover, X8 AG’s official website states that its investment model “establishes the principle of proactively managing funds” by using “financial” artificial intelligence (AI) to stabilize their cryptocurrency’s price - which helps to preserve its value.
Commenting on the fintech sector in the Gulf region, Francesca Greco, the director and co-founder of X8 AG, said:
The Gulf region is a really good place for financial technology companies, because they all want to become hubs for fintech.
Greco added that regulators have been cautious about cryptoassets, particulary stablecoins - as they may potentially be associated with fraudulent schemes.
Varied Approach To Regulating Digital Currencies
Authorities in the Middle East have been actively monitoring the crypto space, and have taken varied approaches to regulating digital assets. Saudi Arabia has strictly prohibited the use of cryptocurrencies - while United Arab Emirates' financial hub, Dubai, has been quite receptive towards digital currency and blockchain-related initiatives.
Notably, there are now many crypto firms that have started offering Sharia-compliant (in accordance with Islamic law) digital currency investment contracts and services. As CryptoGlobe reported in August, ADAB Solutions, a UAE-based financial firm, launched the world’s First Islamic Crypto Exchange (FICE).
FICE operates in accordance with Shariah law - which is based on the teachings of the Holy Quran (central religious text followed by 1.8 Shiite and Sunni Muslims worldwide).
As covered, CoinBundle, a digital currency investment platform, allows users to invest in a “Halal” (Sharia-compliant) cryptoasset investment package.