Hello, I am seeing more and more people aqking for Shariah compliant Defi protocol, does it mean it is forbidden to use as an uae resident some defi lending protocols ?
I quote the law : "It is illegal in the UAE to give a loan on interest by an individual to another individual or a corporate. This is in accordance with Article 409 of the Federal Law No. 3 of 1987 related to Penal Code of the UAE (the 'Criminal Law')."
Pretty surprised if this law is applied most protocols cannot be used
"Accordingly, the prohibition of interest has implications for DeFi. Anyone in the DeFi space is well aware of the prevalence of lending products."
I quote the law : "It is illegal in the UAE to give a loan on interest by an individual to another individual or a corporate. This is in accordance with Article 409 of the Federal Law No. 3 of 1987 related to Penal Code of the UAE (the 'Criminal Law')."
Pretty surprised if this law is applied most protocols cannot be used
DeFi, Islamic Finance, and Crypto Culture in the UAE
BIC explores how DeFi projects rising in the Islamic world are impacted by Islamic finance, and how compliance may change the nature of some of the most popular DeFi projects in the space.
beincrypto.com
"Accordingly, the prohibition of interest has implications for DeFi. Anyone in the DeFi space is well aware of the prevalence of lending products."