IOTA (MIOTA) Achieves Shari’a Compliance Certification
James Ding Aug 06, 2024 14:50
IOTA (MIOTA) has been certified as Shari’a-compliant by the Cambridge Institute of Islamic Finance, aligning with Islamic principles for enhanced trust in the Middle East.
The IOTA Token (MIOTA) has achieved Shari’a compliance certification, marking a significant milestone for the cryptocurrency. This certification was granted by the Cambridge Institute of Islamic Finance, ensuring that IOTA adheres to Islamic principles and legal requirements, according to the IOTA Foundation Blog.
Shari’a Compliance: Aligning with Islamic Principles
Shari’a law, derived from the Qur’an and Hadith, governs various aspects of Muslim life, including moral, social, and legal guidelines. To align with these principles, the IOTA Ecosystem DLT Foundation, based in Abu Dhabi, UAE, has taken steps to ensure that its processes and offerings are Shari’a-compliant. This move is particularly significant given the increasing emphasis on compliance within the Middle East region.
The certification, effective from July 15, 2024, confirms that IOTA meets all generally accepted Shari’a requirements. The Shari’a Assessment Report by the Cambridge Institute of Islamic Finance states that IOTA is a Shari’a-compliant utility token. The certification is based on widely accepted Shari’a principles and standards as practiced in the Islamic financial services industry.
Shari’a Obligations and Requirements
Achieving Shari’a compliance comes with ongoing obligations. These include adhering to generally accepted Shari’a principles for business and maintaining a Shari’a supervision function to ensure continuous compliance. To this end, a Shari’a Governance Framework (SGF) has been established for the IOTA Token. Additionally, the Cambridge Institute of Islamic Finance will serve as an external Shari’a Advisor, conducting annual compliance checks.
Ensuring Global Trust
The Shari’a compliance certification is expected to foster trust and growth for IOTA in the Middle East and globally. By aligning with regional regulations and ethical standards, the IOTA Ecosystem DLT Foundation aims to build long-term confidence among stakeholders. This achievement underscores IOTA's commitment to adhering to regional moral and legal frameworks, thereby enhancing its global and regional ecosystem.
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