Algorand certification was provided by the Shariah Compliance Bureau (SRB), based in Bahrain, and indicates that the platform adheres to the principles of Islamic law.
The company said that according to a study conducted by the Malaysian International Islamic Finance Center in 2017, certification could open up platform capabilities for a global network of Islamic investors with assets worth more than $ 70 billion.
“Our vision for Algorand has always been comprehensive,” said Algorand CEO Steve Kokinos in a statement. “I am pleased that visionary Islamic enterprises will now be able to realize new business opportunities on a platform that is consistent with their financial principles.”
Compliance with Sharia can be difficult for investment instruments of any kind. In order to get approval, they should not profit from activities prohibited by Sharia law, including gambling and alcohol, or accrue interest on loans, as well as engage in other prohibited operations.
It is not known whether the company encountered any obstacles to obtaining certification, but the Algorand platform launched this summer plans to maintain regulatory approval. Each application created on a decentralized platform will be checked by the SRB for compliance with Sharia law.
“We are ready to support the future ambitions of Algorand users in the Islamic financial market,” said SRB CEO Yasser S. Dahlawi.
Recall that in June, the Algorand project raised more than $ 60 million in 4 hours through an ICO, and in August the company raised $ 200 million to open its own venture capital fund.