The UK’s advertising watchdog has banned a campaign by an online investment company predominantly targeting Muslims that featured images of euros and US dollars and the words “The United States of America” in flames alongside a call to “join the money revolution”.

Wahed Invest Ltd, an online investment platform, ran six posters on various Transport for London (TfL) services, including the London Underground and on buses, last September and October.

The posters featured dollars, including the words “The United States of America”, and euros on fire with text stating “Join the Money Revolution”.

The Advertising Standards Authority (ASA) said the ads would have been seen by many people, including visitors from the US and eurozone countries. The authority received 75 complaints that the campaign was offensive.

In its response to the ASA’s investigation, Wahed said that its platform allowed consumers who were predominantly Muslim to invest in an ethical manner which aligned with their faith and values, a major component of which was not charging consumers interest on loans.

The company said the burning of banknotes was designed to be a powerful visual illustration to show that when inflation grew faster than the rate of savings money was akin to “going up in flames”.

A poster stated: “Charging people to borrow money was once called exploitation. Sadly, that perception has changed and now interest has caused a massive wealth gap, enriching the few while the majority get poorer. Join the growing community moving their money to a fairer system.”

Wahed, which launched in the US in 2017 and is backed by the oil company Saudi Aramco and the French footballer Paul Pogba, said it believed all viewers of the ads, not just Muslims, would have understood that expression and that the campaign did not criticise specific groups.

The ASA said the UK code of advertising practice stated that adverts must not contain anything that was likely to cause serious or widespread offence.

The ASA said the advert’s appearance on London transport was an untargeted medium and they were likely to be seen by travellers and holidaymakers.

It said: “Although we acknowledged Wahed Invest’s view that they had not directly criticised a specific group, and that depictions of burning banknotes were commonly encountered, we considered the burning of banknotes would have caused serious offence to some viewers.”

The ASA banned the ad campaign, concluding it was likely to cause serious offence.

Source: The Guardian

The project laid a strong foundation last year, receiving significant media coverage across global tier-1 crypto publications and major fintech outlets in the Middle East and establishing a community of over 1.5 million members. Islamic Coin’s advisory board also boasted several members of the UAE ruling families. This robust foundation had a tangible impact on the project’s presale phase, as ISLM raised over $200 million in private sales and an additional $200 million secured through an investment deed.

What were the challenges for Islamic Coin in 2023?

Despite a strong technological foundation, growing community support, and positive presale rounds, the Virtual Asset Regulatory Authority (VARA) launched a rigorous investigation into the project. However, the HAQQ network effectively cooperated with the regulators, which led VARA to end the investigation without any enforcement or allegations.

“Despite the challenges posed by the investigation, we remained committed to cooperating with the regulator and providing all necessary documentation to prove our compliance with the VARA rulebook,” said Alex Malkov.

The negative fallout from the VARA investigation impacted Islamic Coin’s listing efforts. Initial agreements with top-tier exchanges faltered as these platforms expressed last-minute concerns over perceived risks, leading to unexpected delays and complications in making ISLM available to a broader audience.

Amid these trials, the project also faced targeted negative media coverage. A specific media outlet launched a disinformation campaign against HAQQ, which the network’s leaders refused to quell through paid promotions, standing firm in their values of transparency and integrity.

“We will continue to fight against misinformation and Islamophobia in all its forms, united in our goal of building a more inclusive and equitable financial ecosystem,” said Malkov.

Moving past these adversities, HAQQ Network has emerged with renewed focus and a clear vision for the future.

HAQQ’s Vision: An Ambitious Roadmap

Central to this strategy is launching a gold token in June, a significant development in the HAQQ network’s broader move towards the tokenization of Real-World Assets (RWA). According to the roadmap, this initiative aligns with Islamic financial principles, which emphasize real economic activity and asset backing in financial transactions. Users will be able to exchange the token for real gold; it will also integrate other investment commodities and potential securities in the future. With this launch, HAQQ wants to take blockchain and Web3 advancements towards tangible real-world applications.

Beyond tangible assets, HAQQ Network is also set to tokenize Islamic financial products. This process involves converting financial instruments (e.g. Sukuk) into blockchain tokens, thereby enhancing the liquidity, accessibility, and efficiency of these products.

Adding to these innovations, HAQQ has announced the introduction of VISA cards denominated in ISLM, specifically targeting EU residents. These cards represent a significant step towards integrating Islamic digital assets with conventional financial services

Listings, HAQQ Wallet, and Shariah-Compliant User-Centric Features

Despite facing numerous hurdles, HAQQ Network has achieved notable success that underscores its resilience. Islamic Coin has been listed on various cryptocurrency exchanges. This includes prominent centralized exchanges like Kucoin, LBank, XT, and MEXC, as well as decentralized platforms such as Sushi, Osmosis, and Uniswap.
Furthermore, the launch of the non-custodial HAQQ wallet represents a pivotal development in empowering users.

As we review the journey and forward-looking strategies of the HAQQ Network and its Islamic Coin (ISLM), the project’s resilience is evident. The ambitious roadmap for 2024 and beyond sets a strong foundation for HAQQ’s comeback through the development of new products and the upcoming overall expansion of the ecosystem.

Looking ahead, the confidence in HAQQ Network’s potential is well-founded. With its strategic initiatives and ongoing community engagement, the network is well-positioned to redefine Islamic finance within the Web3 ecosystem, promising a future where financial inclusivity and compliance with the Shariah law go hand in hand.

Continue reading at: TechBullion

US lawmakers have signed a letter calling on the heads of several government financial agencies to tighten regulations on financial crimes and safeguard against the discriminatory de-risking of Muslim American bank accounts. Senator Elizabeth Warren and Representative Ilhan Omar signed the letter along with nine other colleagues, calling for changes in financial regulations that banks adhere to.