FICE is precisely compliance with the principles of Islamic finance
ADAB Solutions has launched the first islamic crypto currency in the world.03 Juli 2019 21:51
Sulaiman al-Fahim, the Chairman of Al Fahim Group. (Twitter)
There are hundreds of unique crypto assets, each with different features related to distribution, mining and trading. They are also very different in terms of their underlying commodities, projects or businesses and it is inappropriate to have one Shariah ruling for all crypto assets, as many of those crypto assets clearly have characteristics that are forbidden for Muslims.
That is why Sulaiman al-Fahim, the Chairman of Al-Fahim Holding which is based in Dubai, through his company, ADAB Solutions, launched the First Islamic Crypto Exchange (FICE) last year.
"We believe that it is precisely compliance with the principles of Islamic finance that is the most effective basis for systematizing and regulating cryptocurrencies," said Sulaiman al-Fahim in an exclusive interview with Faisal Assegaf from Albalad.co via WhatsApp today.
Are you optimistic about the future of crypto currency? If so, what is your reason for that?
The market for cryptocurrency is just in its infancy. Most countries are actively considering the ways to regulate crypto assets. This is not an easy task, which needs to be gradually solved.
Also, a huge number of leading banks and companies, for example, Facebook and Telegram, and even the states, create their own cryptocurrency. The blockchain technology underlying cryptocurrency is a simple and flawlessly reliable way to achieve transparency and honesty in any business, social and government processes.
More and more people are involved in crypto markets, and soon institutional investors will reveal the huge financial potential of this industry. That is why we are very optimistic about the future of crypto assets.
What did encourage you to launch the first islamic digital currency (ADAB Solution) in the world?
First, Islam is our religion and we have created a project that corresponds to our values. Secondly, Islamic finance is one of the fastest growing areas of the global financial system. And thirdly, and most importantly, we believe that it is precisely compliance with the principles of Islamic finance that is the most effective basis for systematizing and regulating cryptocurrencies.
Why not choose a general one?
We have not only created a cryptocurrency, but our most important task is also the FICE crypto exchange, where only those crypto assets that comply with the principles of Islamic finance will be traded.
For that purpose, we have developed a crypto scoring system and other regulatory documents. We have released the Alpha version of the exchange, and within two months we will complete the work on its development.
Who are the targets of your islamic crypto currency?
Our crypto currency is targeted to all investors, not only Muslim investors. But it has features that would attract the Muslim population into the crypto by solving the main hesitation of Muslims on Shariah compliance of crypto assets.
Can you explain why the investors should understand the first Islamic crypto exchange (FICE). What is the difference with others?
Our exchange has many advantages and differences. First of all, this is of course compliance with Islamic finance. But there are also many technical advantages - our technological solutions and security will be at the level of the world's best crypto exchanges, and even surpass them in some parameters.
There are many innovations, for example, blockchain ratings of traders, a system of trading signals, setting up a risk management system, as well as the most profitable referral program.
How are the islamic scholars and clerics in UAE reacting? Why is it that many Muslim countries still forbid crypto currency?
Indeed, some of Shariah scholars view crypto assets with scepticism. One of the first opinions by Shaikh Shawki Allam (Grand Mufti of Egypt) deemed crypto assets to be prohibited, while other bodies such as the Turkish Religious Authority associated crypto assets with Gharar (Excessive Uncertainty).
The UK-based scholar Shaykh Dr. Haitham Al Haddad had an opinion that crypto assets do not match Shariah rules due to the lack of legal control and asset-backing on this kind of digital assets.
On the other hand, many other scholars look at cryptocurrencies from another perspective; going back to the fundamental definition of Mal (Property) where it meets the criteria of being storable, retrievable with utility.
Further, some crypto assets have the potential to serve as a store of value, unit of account and medium of exchange. In the UAE (ADGM) crypto-asset regulatory framework refers to the general definition of the activities under “Spot Crypto Asset Framework”, this carries a comforting value from a Shariah perspective, where the clause is comprehensive of Exchange, Custodian and Intermediation activities.
This tackles one of the initial obstacles associated with the approval of cryptocurrencies by the guiding scholars.
How long has it been?
Investors are wary in the Arab region because this is a new direction for investment. However, after the meetings and with our help, people will learn more about this area of investments and join us.
Our investors understand that they are making the most modern and reliable investments.
Do you believe that digital currency will replace conventional money in the future?
We believe that this will not happen in the foreseeable future. However, we believe that part of the global money supply, perhaps a very large one, will be contained in crypto assets. Also, we believe that fiduciary money based on the blockchain is quite possible.
For example, cryptoeuro, which will circulate on a par with the usual euro. Cryptocurrencies are not the same, they need to be classified and adjusted according to their functions. Therefore, cryptocurrency has its own functions, including monetary.
How about your plan to expand the market of your first islamic crypto currency?
Our efforts will be directed not only at popularizing crypto assets in Islamic markets, but we also want to work with investors and traders from around the world. We have many plans and ideas on how we will achieve this. Already, our investors are represented from almost 50 countries.
Which countries will be your targets?
Of course, this is primarily the countries of the Arab region. But the markets of Turkey, Russia, Central Asia, Indonesia and some countries of Europe and Africa are also very important for us.