ByBit Introduces First-Ever Crypto Islamic Account

Bybit, a leading cryptocurrency exchange, has introduced a range of Shariah-compliant products tailored for Muslim investors.

On 24 September, Bybit's co-founder and CEO, Ben Zhou, announced on X (formerly known as Twitter) the launch of the Crypto Islamic Account, which offers access to spot trading of Shariah-compliant tokens along with automated tools like a dollar-cost averaging (DCA) bot and a spot grid bot.

The account allows investors to trade without compromising their faith, as according to the Shariah ruling, digital assets are considered "mal" (assets of value) under Shariah, and the tokens traded are classified as goods rather than ribawi (interest-bearing) currencies.

The ruling states:

“We have been appointed as the Shariah Adviserfor Bybit Fintech Limited (Company Registration No.: 226958) ("Bybit"), a company incorporated in the Republic of Seychelles and operating as a cryptocurrency exchange with headquarters in Dubai. Bybit has received the Minimum Viable Product (MVP) licence from the Virtual Assets Regulatory Authority (VARA), Dubai, and is regulated by the Cyprus Securities and Exchange Commission, and Astana Financial Services Authority.”

Bybit's Islamic account represents a significant step in offering a faith-aligned platform for Muslim traders.

The exchange supports a variety of tokens, including USDT, Avalanche, Litecoin, and Uniswap, ensuring a diverse yet compliant trading environment within Islamic guidelines.

Crypto Assets Under Islamic Law

Islamic finance operates under the principles of Shariah, or Islamic law, which emphasizes fairness and ethical practices in financial transactions.

A key tenet of this system is the prohibition of interest, shifting the focus to profit-and-loss sharing arrangements between borrowers and lenders.

In these agreements, both parties share the risks, profits, and losses of an investment, fostering equitable financial relationships.

Islamic finance allows investments in assets such as stocks, bonds, and even cryptocurrencies, provided they comply with Shariah principles.

For crypto assets to be considered permissible, they must operate under a profit-and-loss sharing model, ensuring investors participate in the business's outcomes rather than receiving fixed returns.

Before Muslim investors can engage with these assets, a supervisory board reviews and certifies the tokens, ensuring they meet the ethical standards set by Islamic law.

This certification involves a thorough examination of the token's structure and functionality to confirm its compliance.

Bybit, in its effort to offer Shariah-compliant crypto products, partnered with Zico Shariah, a Malaysian advisory firm specializing in Islamic finance.

This collaboration ensures that Bybit's offerings meet the rigorous requirements of Shariah law, enabling Muslim investors to access the crypto market while adhering to their religious values.

Through this platform, they can engage in transparent, interest-free trading that aligns with Islamic ethics.

ByBit's Recent Turkey Licensing

The recent launch comes shortly after Bybit Türkiye was officially recognised as a crypto asset service provider by Turkey's Capital Markets Board (CMB).

In a statement on 23 September, Bybit Türkiye, operating through Narkasa Yazılım Ticaret Anonim Şirketi, emphasized its commitment to regulatory compliance since its rebranding in June 2024.

This move is part of Bybit's broader strategy to strengthen its foothold in Turkey.

The platform has integrated advanced technologies and offers trading pairs with the Turkish lira.

Bybit has also partnered with local banks such as Ziraat Bank and Vakıfbank to provide seamless banking services.

Additionally, it has introduced user-friendly features like one-click purchasing, appealing to both novice and experienced traders.