Certified by Islamic scholars, “Sharia Earn” is currently offered in the United Arab Emirates and 28 other countries. Sharia Earn, a new blockchain-based earn product created to adhere to the rules of Islamic banking, has been launched by Binance, the biggest cryptocurrency exchange in the world based on trading volume.
The action is being framed as a step towards broader financial inclusion in the cryptocurrency field and is Binance’s first official foray into Sharia-compliant digital finance.
Amanie Advisors, a well-known Sharia advising organisation worldwide, has formally validated the product, guaranteeing that it complies with Islamic investing regulations. With Sharia Earn, users can stake popular cryptocurrencies like BNB, ETH, and SOL to generate passive income in accordance with Islamic law.
According to Binance, the introduction fills a long-standing market void. Despite the fact that the worldwide Islamic finance market is worth over $4 trillion, many Muslim investors have been hesitant to engage in decentralised finance because of worries about religious compliance.
The goal of the new product is to provide a transparent, values-based substitute. It has built-in safeguards against investments in non-Sharia assets, riba (interest), and gharar (extreme uncertainty).
Currently accessible in the United Arab Emirates
The UAE, Saudi Arabia, Qatar, Egypt, Indonesia, Pakistan, and other nations in the Middle East, North Africa, and South Asia are among the 29 nations where Sharia Earn is first being implemented. The UAE is a crucial market for Binance’s aspirations in Islamic finance due to its supporting regulatory framework and expanding population of tech-savvy individuals.
Based on the framework of Binance Earn’s current staking products, the platform has been examined and authorised in accordance with a Wakala agreement, which is a typical Islamic financial arrangement. This guarantees that the money is only used for projects that adhere to Islamic law.
Islamic finance meets blockchain
While the decentralisation and transparency of blockchain technologies have upended traditional banking, Sharia finance offers its own ethical investing framework that emphasises interest-free, socially conscious arrangements that encourage risk-sharing and fair wealth distribution.
Binance’s new product, which combines the two worlds, is anticipated to draw in a large number of religiously inclined investors who had previously avoided the cryptocurrency revolution. Particularly in regions with a majority of Muslims, like the United Arab Emirates, industry watchers view the product as a possible standard for Sharia-compliant digital finance.
In keeping with larger national policies centred on fintech, sustainability, and financial inclusion, Sharia Earn’s launch coincides with the UAE’s growing status as a global centre for Islamic finance and digital assets.
Although it has not yet specified when access would be extended outside of the first 29 countries, Binance has stated that it will keep a careful eye on regulatory changes and uptake.
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