HelloGold Targets Islamic Investors with Certified Sharia-Compliant Token

The question of whether cryptocurrencies themselves comply with Islamic ‎‎‎law has not been addressed. ‎

Malaysia-based fintech firm HelloGold announced that its gold backed ‎token, ‎GOLDX, has been certified as being compliant with Islamic financial ‎law.‎

GOLDX is backed by physical investment-grade gold, with each token ‎equal to one ‎gram. The gold is stored in a vault in Singapore. HelloGold says that ‎it never issues a GOLDX ‎token unless it holds its equivalent amount of gold, ‎and to guarantee transparency its ‎records are publicly accessible and ‎verified independently by its vaulting partner.‎

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Investors can buy GOLDX tokens using cryptocurrencies, including Bitcoin ‎and ‎Ethereum. It provides them with exposure on gold through a digital ‎token, as well ‎as a liquid investment vehicle as the token itself is ‎transferable between ‎Ethereum wallets.‎

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The question of whether cryptocurrencies themselves comply with Islamic ‎‎law has not been addressed. However, the certification by Amanie Advisors ‎‎of Malaysia, a sharia advisory company specializing in Islamic ‎financial ‎institutions, is expected to stimulate investment in the blockchain-‎based ‎platform within the Muslim world. ‎

The authorization opens up investment opportunities in digital ‎currency ‎products to Muslims around the world, ‎which could see a spike in demand ‎after being adjusted to ‎the new guidelines.‎

All economic activity in Islamic finance must be compliant with sharia law, ‎which has stringent rules to ensure certainty and immediacy of transactions. Islamic ‎law also prohibits the acceptance of interest or fees for loans of money.‎

Commenting on the news, Robin Lee, co-founder and CEO of HelloGold, ‎said: “Having ‎earned the world’s first Syariah-compliance certification for our ‎GOLDX token, HelloGold ‎has opened the door to over a billion Muslims to ‎access a new financial product. As the ‎international Islamic financial market ‎continues to grow and draw interest from non-‎Muslim countries, the Islamic ‎financial services industry’s total worth has reached US$1.9 ‎trillion (RM7.4 ‎trillion) in 2016.”‎

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