In a significant move towards inclusivity in the cryptocurrency sector, Bybit, the second-largest crypto exchange by trading volume, has announced the launch of Sharia-compliant crypto accounts. Developed in consultation with ZICO Shariah Advisory Services, these accounts are designed to align with Islamic principles, ensuring that Muslim investors can participate in the growing crypto market without concerns about interest-based transactions.
A New Era For Muslim Investors
Bybit’s Sharia-compliant accounts will allow users to trade without the burden of interest, an essential consideration for adherence to Islamic law. These accounts are set to offer a range of trading options, including Spot Trading, Dollar Cost Averaging (DCA) Trading Bot, and Spot Grid Bot. As per Bybit CEO Ben Zhou, the initial offerings will include support for 18 cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDT and USDC.
This launch positions Bybit as a pioneer among major crypto exchanges, marking a first in offering Islamic accounts aimed at Muslim traders worldwide. With the rise of digital assets, this initiative could serve as a gateway for many Muslim investors, promoting broader adoption within this demographic.
To operate these accounts, users will need to establish a primary account, which will facilitate deposits and withdrawals. This layered approach ensures that the Sharia-compliant subaccounts are fully integrated into Bybit’s ecosystem while maintaining adherence to Islamic financial principles.
Kraken’s European Expansion
In parallel to Bybit’s announcement, Kraken, another major player in the crypto exchange arena, is broadening its footprint in Europe through the acquisition of Dutch crypto broker Coin Meester B.V. (BCM). This strategic move is described as a “key element” in Kraken’s growth strategy, significantly enhancing its operational capabilities across the continent.
With the BCM acquisition, Kraken now has registered Virtual Asset Service Provider (VASP) status in multiple European countries, including France and Poland. This expansion allows Kraken to offer VASP services either directly or through partnerships in eight countries, including Germany, Spain, Italy, the Netherlands, Belgium, Ireland, France, and Poland. The growth trajectory of Kraken further underscores the increasing acceptance of cryptocurrency in traditional financial landscapes.
Coinbase’s Legal Battle for Clarity
Meanwhile, in the U.S., Coinbase is making strides to clarify the regulatory landscape for cryptocurrencies. The exchange has appealed the SEC’s denial of its rulemaking petition, arguing that a clear legal framework is essential for fostering crypto adoption. The lack of regulatory clarity has been a significant hurdle for many investors, and Coinbase’s appeal comes at a critical time, especially given the recent regulatory confusion surrounding the classification of various digital assets as securities.
Also Read: Bybit Becomes First Top-3 Exchange To Offer PayPal USD (PYUSD) On Solana
The SEC has faced backlash for its ambiguous terminology, particularly regarding “crypto asset securities,” which has complicated the legal standing of several assets, including XRP. As the regulatory environment continues to evolve, clearer guidelines are crucial for instilling confidence among institutional and retail investors alike.
Conclusion
Bybit’s launch of Sharia-compliant crypto accounts represents a significant milestone in making cryptocurrency accessible to Muslim investors, while Kraken’s acquisition signals a robust expansion strategy in Europe. As the crypto landscape continues to evolve, developments like these may foster greater inclusivity and regulatory clarity, paving the way for broader adoption in the digital asset space. As exchanges like Bybit and Kraken lead the charge, the future of cryptocurrency looks promising, offering opportunities for a diverse range of investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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