Sharia Compliance Permit Granted To Stellar
After a strong review by Bahrain’s Sharia board, Stellar has been granted a license which places its products and services as compliant with Islamic law.
XLM’s developmental company, the SDF, announced the recent qualification of the company in Bahrain under its Sharia compliance laws. The certificate, granted by Bahrain’s SRB, permits financial transfers and allows assets to be tokenized.
The SRB began reviewing Stellar, assessing its products, services, networks and its native token, the XLM. Any user of XLM must fully comply with Islamic monetary laws. As the certificate says, in light of the SRB’s review into Stellar and its products, no violations of Sharia law have been discovered.
A warning included in the certificate states that those looking to obtain certification regarding compliance with the Sharia law must be prepared as simply complying with the laws and committing to the guidelines in place does not guarantee full compliance. All documents, qualifications, investment must be certified by leading Sharia officials.
Stellar has stated, the Sharia certification by the review board complies with the financial principles of Islam which are enforced throughout the gulf as well as certain locations in Southeast Asia, including Indonesia.
Bahrain’s Islamic license warrants several provisions which include the Sharia regulations regarding XLM’s trade, including any other digital currency operating on Stellar’s platform. Rules included a focus on buying and selling, as well as exchanging and trading cryptocurrencies.
Launched in 2014, the platform aims at becoming a P2P network with no centralization. Designed on Ripple’s back, the platform was enhanced two years later with new algorithms and enhanced features. Lumen, or XLM, is currently ranked as number 7 on the top ten cryptocurrency list and boasts almost five billion dollars in total market cap.