The Central Bank of Bahrain (CBB) has announced a license to CoinMENA, a Bahrain-headquartered new crypto exchange outfitting for its launch, enabling the business to offer its services across the Middle Eastern region in agreement with the Sharia law. CoinMENA intends to make its platform available in Bahrain and the UAE, Saudi Arabia, Kuwait, and Oman.
The exchange stated it would offer Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), and Ripple (XRP).
“As CoinMENA grows, we will be providing access to additional digital assets and expanding the jurisdictions we operate in, with the view of becoming one of the leading digital assets exchanges on a global scale,” Dina Sam’an, Co-Founder and Managing Director of CoinMENA, was cited as stating in an announcement. The company aims to launch the platform “soon.”
The CBB has announced a Category 2 Crypto Asset Services Company License to the company, stating that the exchange observes Sharia’s rules or Islamic law. This covers the platform in several Middle Eastern markets where Islamic finance dominates their economic landscapes. The distribution of profit and loss and the ban on the collection and payment of interest are two Islamic banking foundations.
“Each transaction must be related to a real underlying economic transaction,” according to a Vancouver-based Corporate Finance Institute analysis.
“Parties entering into the contracts in Islamic finance share profit/loss and risks associated with the transaction. No one can benefit from the transaction more than the other party.”
By growing cryptocurrency trade into the world of Islamic finance, CoinMENA could enter a market that was assessed to be worth about USD 2.1tn last year, as per a report published by S&P Global. Islamic finance has a firm hold in the Middle East but is also expanding in other regions of the world with significant Muslim populations.
“Sharia-compliant assets represent 14% of total banking assets in [the Middle East, North Africa, and South Asia region] and 25% of banking assets in the [Gulf Cooperation Council region], suggesting that Islamic banking continues to be systemically important in these countries,” according to the report.
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