Luno has become the first regulated digital asset exchange to offer Ethereum (ETH) staking certified as Shariah-compliant.
The certification, conducted by Amanie Advisors, a registered Shariah advisory firm with the Securities Commission Malaysia, ensures the service aligns with Islamic principles.
Malaysia is the first market where Luno’s Shariah-compliant Ethereum staking is available.
Luno’s platform allows investors to stake Ethereum with minimal financial barriers, starting at 0.00001 ETH or RM1, offering potential rewards of up to 3% annually, distributed weekly.
These rewards are given in Ethereum and may vary depending on network conditions.
While Luno doesn’t charge a fee to stake or unstake, there is a service fee deducted from the rewards users receive.
Ethereum staking, which uses a proof-of-stake mechanism, enables participants to earn rewards by helping validate cryptocurrency transactions.
While this process typically requires technical expertise, Luno simplifies access, ensuring security by collaborating with trusted validator providers with monitoring and safeguards in place to mitigate potential risks.
Participants face potential penalties for validating flawed or fraudulent data, but Luno works to reduce this risk through the use of fail-safes and trusted validator partnerships.
Scarlett Chai, Country Manager for Malaysia, Luno said,
“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.”
Tan Sri Dr Mohd Daud Bakar, Amanie Advisors’ Founder said,
“Staking technology creates another fingerprint in the contemporary Shariah compliant world. Technology really makes Shariah visible, fashionable and impactful”.
