iota-news.com
IOTA is Now a Shari’a-Compliant Token
TL;DR:
The IOTA Token is now Shari’a-compliant, certified by the Cambridge Institute of Islamic Finance. This ensures adherence to Islamic principles and legal requirements, with a Shari’a Governance Framework and annual compliance checks fostering trust and growth in the Middle East and globally.
In the fast-changing regulatory landscape that we are subject to, compliance with applicable laws and regulations is critical for building trust and confidence with regulators, business partners, and individual users. This is especially essential for a token like IOTA, with an international presence and global reach.
The IOTA Ecosystem DLT Foundation was established in Abu Dhabi, United Arab Emirates, to support projects and ecosystems built on IOTA and its staging network, Shimmer. In this context, there is an increased need for and special emphasis on compliance with requirements in the Middle East region.
Shari’a Compliance: Aligning with Islamic Principles
In the UAE and the wider Middle East, it is important to align and work in accordance with Shari’a law, a system of Islamic principles and guidelines derived from the Qur’an and Hadith that govern the moral, social, and legal aspects of Muslim life. For this reason, a need was felt to strive towards compliance by ensuring the processes, procedures, and offerings of IOTA Ecosystem DLT Foundation and the IOTA token are Shari’a compliant.
We are happy to confirm that, as of 15/07/2024, the IOTA Token is certified by the Cambridge Institute of Islamic Finance as fulfilling all the generally accepted Shari’a requirements and guidelines. The Shari’a Assessment Report, which in its verdict provides that IOTA is a Shari’a-compliant utility token, underlies that the certification is based on accepted Shari’a principles and standards as practiced and adopted in the Islamic financial services industry. The certificate can be viewed here.
Shari’a Obligations and Requirements
Being Shari’a-compliant comes with several obligations that need to be continually observed and complied with, including:
- Adhering to generally accepted Shari’a principles for doing business.
- Maintaining a Shari’a supervision function to ensure ongoing compliance with Sharia rules.
To this end, a Shari’a Governance Framework (SGF) for the IOTA Token is now in place to ensure activities comply with Islamic principles and legal requirements. Also, the Cambridge Institute of Islamic Finance will act as an external independent Shari’a Advisor, checking annually on the continued compliance with Sharia requirements.