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A New Shariya-Compliant Cryptocurrency Surfaces
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A New Shariya-Compliant Cryptocurrency Surfaces

by John M.November 12, 2018

Digital justice shall be served. A US man was found guilty of running a fraudulent Ponzi scheme involving Litecoin. The upshot is $1.1 million fine and 15 months in prison.

Joseph Kim of Phoenix, Arizona has received a stringent fine to the tune of $1.1 million and sentenced to 15 months incarceration after he was found out to be running a Ponzi scheme involving Litecoin and Bitcoin. The US Commodity Futures Trading Commission has acted swiftly, publishing the report on November 9.

Mr. Kim was found guilty of defrauding his employer, a Chicago-based trading company, which the guilty party led to believe was investing via cryptocurrencies when, in fact, the company was depositing straight in Mr. Kim’s own bank account. The incident took place in 2017 and the transferred sum was $600,000.

Heady with his victory, Mr. Kim continued to pursue people who were open to the idea to invest in Bitcoin. Not long after he was after new investors who agreed to pay him $545,000, and the affected parties did agree to the transaction.

Mr. Kim tried to use the funds to kickstart his own trading company, but lost all money subsequently. According to sources, while his intentions were bad, they weren’t entirely without logic. He had hoped to amass investment and start his company, making a quick profit and then returning the money to their owners.

However, the reality is turning out to be much more bitter and Mr. Kim will now have to return the money he had already lost, not to mention that he no longer can be part of the trading force.

Meanwhile in Switzerland

While the crooks of the crypto world are individuals whom we meet every day, the news of the hours are quite exciting. A Switzerland-based fintech firm is now going to develop a Shariyah-compliant stable coin.

The wold of Islam is embracing new possibilities by welcoming the Shariya stablecoin, which will attempt to become one of the assets to trade goods with moving forward. Believe it or not, there has been a vehement debate over the compatibility of cryptocurrencies with the Shariya law.

The upshot is that interested parties who represent the religion and culture are now wanting to push ahead with plans that will put cryptocurrencies besides gold and fiat. With the overall volatility, it’s understandable why many financial institutions in the Middle East (and even across Europe and North America) are looking with a wary eye.

The fact is that there is too much speculation going in cryptocurrencies, which can be equated to a form of gambling. However, new tech savvy investors are now trying to defy this perception and kickstart a “stable coin” that will be able to hold with the values of the law and also highlight the importance o embracing the new modes of doing business.

Shariya compliant or otherwise, cryptocurrencies will be a valuable item of the future and they need to be studied and utilized for the benefit of economies. This is precisely what observers and experts think.

 

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John M.
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