Algorand has been certified as sharia-compliant, the company said Monday.
The certification was provided by Bahrain-based Shariya Review Bureau (SRB) and indicates that the Algorand platform adheres to the tenants of Islamic law. It could open up the platform and its features to a global network of observant Islamic investors estimated to be worth more than $70 billion, according to a 2017 study by Malaysia International Islamic Financial Center.
“Our vision at Algorand has always been inclusivity,” Algorand CEO Steve Kokinos said in a statement. “I am excited that forward-thinking Islamic enterprises will now be able to realize new business opportunities on a platform that is congruent to their finance guidelines.”
Sharia compliance can be complex for investment vehicles of any kind. To secure approval they must not profit from activities banned under sharia law, including gambling and alcohol, or accrue interest on loans, another banned activity.
It’s unclear what hurdles Algorand jumped to win SRB’s certification, but the platform, which launched in June, plans to retain approval as it continues to develop. Every dapp built on the platform will be reviewed by the SRB for sharia compliance.
“We stand ready to support the future ambitions of the users of Algorand in the Islamic financial market,” SRB CEO Yasser S. Dahlawi said in the statement.
Bahrain image via Shutterstock