Luno is now the world’s first regulated digital asset exchange to offer Ethereum (ETH) staking that is certified Shariah-compliant. The certification is a major milestone in making cryptocurrencies an alternative investment to Muslim investors in a region that has over a quarter of a billion Muslims.
The cryptocurrency exchange – which is present in both Malaysia and Indonesia – will see Malaysia become the first country where Luno’s Shariah-compliant Ethereum Staking is available, assuring Malaysian Muslim investors that their investment is aligned with Islamic values.
Committed to enabling investors to explore and diversify their portfolios safely and securely, the global cryptocurrency exchange engaged world-renowned Islamic finance consultancy firm Amanie Advisors Sdn. Bhd. (Amanie Advisors), which is also a registered Shariah advisory firm by the Securities Commissions Malaysia, to review Luno’s existing Ethereum Staking to ensure Shariah compliance.
Luno’s Country Manager for Malaysia, Scarlett Chai, said, “Malaysia has been recognised as a hub for Islamic financial services following its success in pioneering Islamic banking. Today, with the Shariah-compliant certification of Luno’s Ethereum Staking, we are pleased to announce that Malaysia has once again pushed the envelope and is still at the forefront of shaping the Islamic financial services space.”
“With our Ethereum Staking now Shariah-compliant and live, we see ourselves expanding our array of Shariah-compliance services and coins so everyone can invest with assurance”, added Chai.
Amanie Advisors founder Tan Sri Dr Mohd Daud Bakar commented “Staking technology creates another fingerprint in the contemporary Shariah compliant world. Technology really makes Shariah visible, fashionable and impactful”.
Investors can potentially receive rewards of up to 3% ETH per annum, weekly, without needing technical knowledge to set up staking. Staking through Luno also lowers the financial barriers to entry for investors looking to earn rewards with a minimum of 0.00001 ETH or RM1 to stake.
What is staking?
Staking is a way of generating rewards on your crypto by helping to verify cryptocurrency transactions. You can stake cryptocurrency in projects that use a proof of stake consensus mechanism to process transactions, such as Ethereum.
The proof of stake consensus mechanism requires people to actively put their cryptocurrency to work to help secure the cryptocurrency network. To verify transactions and get rewards, you have to put up a certain amount of cryptocurrency before you can take part.
If you validate the right transactions, you will be rewarded. If you validate flawed or fraudulent data, you may lose some of your stake as a penalty; however, we work hard to mitigate this risk by teaming up with trusted validator providers with industry-leading monitoring, fail-safes, and protection in place.
What are the rewards?
Luno will offer an annual reward percentage of up to 3% per annum on staked Ethereum, in Ethereum, though this will vary depending on network conditions.
The potential rewards are given every week. Luno doesn’t charge a fee to stake or unstake your cryptocurrency, but there is a staking service fee that is deducted from the reward customers receive. For more information, investors can stay updated via platforms such as the LunoDiscover page, as well as through Luno’s Malaysia official Facebook and Instagram pages.
