For those of you who are involved in the cryptocurrency investment industry, you must be familiar with the Staking function in cryptocurrency terms. In short, it is one of the methods to generate crypto rewards by helping to validate crypto transactions. You can stake cryptocurrencies on projects that use the ‘Proof-of-Stake’ consensus mechanism to process transactions, such as Ethereum.
During the Luno Malaysia announcement today, Luno Malaysia General Manager, Scarlett Chai said that the Ethereum Staking function on the platform has been certified as Shariah compliant, thus reassuring Muslim investors in Malaysia that their investments are in line with the requirements of sharia.
Luno has collaborated with international Islamic financial consulting firm, Amanie Advisors Sdn. Bhd. which is a sharia advisory firm recognized by the Securities Commission of Malaysia to conduct a comprehensive and detailed review of Luno’s Ethereum Stake function to ensure its compliance from a sharia perspective.
“Malaysia is known as a hub for Islamic finance and its success in becoming a pioneer of Islamic banking today. Today, with the Shariah-compliant recognition of Luno’s Ethereum Stake function, we are proud to announce that Malaysia has once again taken a step forward and remains at the forefront of driving Islamic financial services,” said Scarlett.
Through this Ethereum Stake function, Luno will offer an annual percentage reward of up to 3 percent per year on Ethereum staked as Stake. The reward will be received in the form of Ethereum cryptocurrency (ETH), and the amount of the reward will depend on the network conditions.
In the meantime, these Ethereum Stake rewards will be distributed to Luno users every week, and the platform will not charge any additional fees to participate in this function or for each reward received.