Muslim-focused decentralized finance platform Marhaba has developed the “world’s first” certification for non-fungible tokens while complying with Sharia law. NFT’s embossings are sent to a Sharia administrative body, which reviews the artwork to determine if it conforms to “Halal,” an Arabic concept that defines what is permissible under Islamic law.
“The non-reliance of NFT-based Halal compliance certifications fills an urgent need in the Halal business sector. Where counterfeiting of certificates is common or difficult to validate, particularly in the halal food industry.”
– MRHB Founder and CEO Naquib Mohammed
The process involves NFTs projects being submitted to a Sharia Board of Governors. The panel then reviews the artwork’s compliance with Sharia law. NFTs that pass the panel’s review are additionally “Halal Certified”; Halal NFTs receive a blockchain certificate curated by Sharia Experts LTD, an Islamic consulting platform for Web3 projects.
Marhaba really decentralized?
Marhaba sees itself as a truly decentralized entity. However, the use of its “Governance Board to enforce Sharia compliance” raises concerns about the autonomy of the Defi.
“We definitely control certain aspects, like listing and operation, within a select set of protocols. But once checked by the Sharia team, the decentralized aspects remain untouched.”
Mohammed further explained that besides religious considerations, the fundamentals of the halal-compliant NFTs are also acceptable to those who do not follow Islam. Under Sharia law, MRHB continues to build an ecosystem of defi products and services “specifically designed for ethically conscious people like Muslims.”
Regardless of the economic hurdle the Marhaba must overcome in terms of overview; You have done a lot for Defi in Islamic areas. In 2021, Marhaba raised $5.5 million in an Initial Dex Offering (IDO). It has since launched a crypto halal wallet called Sahal and has partnered with 14 companies including Polygon.