ADAB Solutions: Building the First Islamic Shariah Compliant Cryptocurrency Exchange

October 26, 2018 17:07 UTC

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In the past few years, the cryptocurrency market has seen a sharp increase in adoption from countries in Asia, Africa, and East Europe. For the majority of cryptocurrency’s existence since 2009, investment from these countries had remained oddly absent. While part of this was due to the lack of infrastructure, the simple truth is that the masses were simply not even aware of the industry’s potential. Once retail and institutional investors of these countries got wind of the cryptocurrency market, adoption and investment grew exponentially and were arguably single-handedly responsible for the surge in value throughout 2017.

However, even though cryptocurrency penetration is at an all time high in most countries around the world, the same cannot be said for the Middle East, where no major player has attempted to introduce the asset class. To that end, ADAB Solutions is a startup that is aiming to bring digital currency and blockchain technology to almost two billion Muslims around the world. By the end of 2019, it plans to launch its own cryptocurrency exchange and reach 1 million users of the exchange.

ADAB Solutions’ primary project is its cryptocurrency exchange, named First Islamic Crypto Exchange (FICE). The company plans to register itself within the United Arab Emirates and set up jurisdiction for the FICE in MFSA, Malta. The FICE exchange will begin offering trading services to all people globally, regardless of their religion. In order to ensure that projects listed on the platform are compliant with Shariah law, ADAB has stated that it will create a Shariah Advisory Board consisting of top experts in the field of Islamic finance.

The FICE exchange will be the first on that has within its structure the Department of Islamic Finance and the Sharia Advisory Board. These bodies ensure compliance with the principles of Islamic Finance in the work of the exchange, including the admission to the listing of crypto assets, which complies with the norms of Islamic Finance. ADAB Solutions’ offering will be a cryptocurrency exchange that is fully compliant with the principles of Islamic Finance. In that regard, it is the first and only company to seek the approval of Islamic financial experts.

Given that Islamic financial assets alone account for trillions of dollars worldwide, and the Middle East houses some of the richest countries in the world, ADAB Solutions is confident that this untapped market will benefit from the cryptocurrency market greatly. Additionally, ADAB has confidently stated that investors participating in the crowd sale will be uniquely positioned over future users and will see greater profit potential. To detail this, the company has published a Financial Forecast on its website.

Even beyond that, ADAB has stated that it aims to cater to Muslims located around the world in 120 different countries, or approximately 20 percent of the world’s population. Of these, 73 countries either belong to the Organization of Islamic Cooperation or have developed economies following Islamic tradition. Therefore, unlike any other exchange in existence, ADAB pledges to offer customer support in some international and all Muslim languages.

ADAB Solutions aims to be one of the top cryptocurrency exchanges within the next four years and a monthly turnover of $4.4 billion. To kickstart the project and fund its development, the company has launched an initial coin offering for its native ADAB token. Based on the Ethereum blockchain, these tokens will be used as a means of payment on the cryptocurrency exchange. Initially valued at $0.1, early adopters and investors can purchase the token in the Pre-Sales stage, which is running now.

Initially, these tokens will be valued based on the dynamics of market supply and demand. Later on, however, once trading commences on FICE in 2019, ADAB tokens will be the main source of revenue for the exchange. Every month, ten percent of these collected tokens will be burnt and not recirculated. According to the company, this, combined with the increase in trading volume and demand for the token, will help push ADAB’s price higher each passing year.

Given that the annual growth of Islamic finance is estimated to be quite high, at around 12 percent, ADAB is optimistic about FICE’s future growth. The company forecasts that FICE will have one million users by the end of its first year in 2019, with over $4.4 billion worth of trading volume. Since the ADAB token follows a deflationary model and is initially sold at only $0.10, the team believes that it will eventually become more valuable. By 2022, ADAB predicts that its early investors will enjoy great returns on their initial investment, with the token valued above $11.

Given that ADAB has committed to upholding Sharia law and tradition, the FICE cryptocurrency exchange will be held to a greater standard than existing players. The platform is designed to not only be completely transparent, but also to disallow dishonest or risky transactions, such as uncertain margin trading and gambling. Furthermore, it will also ensure that all future cryptocurrency projects listed on the platform have no affiliation with Islamic vices.

Since payment of ‘Zakat’ or charity is also a major part of Shariah law, ADAB has committed to donating a part of its net income in the project white paper. The company will reserve 5 percent of its quarterly income and 2.5 of its annual income for the ADAB Charity foundation. The non-profit will make public donations to people in need of money.

Last modified: September 12, 2019 01:29 UTC

Rahul Nambiampurath is an India-based Digital Marketer who got attracted to Bitcoin and the blockchain in 2014. Ever since, he's been an active member of the community. Other than that he is a die hard gamer. This gadget freak is well renowned in his circle for binge-watching Game of Thrones.