IOTA (MIOTA) Achieves Shari’a Compliance Certification

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.

Image
source:
Shutterstock