Canadian fintech company Goldmoney Inc. today announced that the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi), the Bahrain-based Islamic standard setting body, has certified its gold-based accounts and Wealth Holdings as Shariah-compliant.
The news opens up investment opportunities in gold-based financial products to Muslims around the world, who are now able to globally purchase, save and transact quickly in gold on the fintech platform. Goldmoney’s products, which include network accounts and wealth holdings, could see a spike in demand after being adjusted to the new guidelines.
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All economic activity in Islamic finance must be compliant with Sharia law, which has stringent rules to prevent unjust transactions. However, gold’s status under Sharia law was complex and unclear until the World Gold Council (WGC) and the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi) teamed up to develop a new Sharia-compliant standard for gold transactions.
The standard, which was officially launched in in December 2016, has provided a rulebook and is expected to attract massive Islamic investments and lead to the creation of new Islamic gold products later this year.
SPDR Gold Trust, the world’s biggest gold ETF, has officially approved a new gold standard under Sharia financial law in December 2016.