First: Criteria for prohibiting digital currencies from a legal perspective
Based on the opinions of contemporary scholars and jurists, digital currency is considered forbidden by Sharia in the following cases:
Currencies associated with prohibited activities: If the primary purpose of the currency is to support prohibited activities such as gambling, pornography, drugs, alcohol, or any other prohibited activity.
Interest-based currencies: currencies that involve interest or offer rewards through interest-bearing decentralized finance (DeFi) products.
Currencies based on uncertainty and ignorance: Currencies that rely on unclear mechanisms or excessive, uncalculated risks.
Currencies used in illegal activities: Currencies that facilitate money laundering or circumventing laws.
Second: List of Sharia-prohibited currencies traded on Binance
Based on the above criteria, the currencies prohibited by Sharia on the Binance platform can be classified as follows:
1. Gambling and gambling currencies
WINkLink (WIN): A currency that powers online betting and gambling platforms.
TronBet/ANTE: A currency used on online gambling platforms.
FunFair (FUN): A currency dedicated to online casino platforms.
Wagerr (WGR): A currency used in sports betting.
2. Currencies linked to pornography and adult entertainment
PornRocket: A currency dedicated to supporting pornographic content platforms.
SexCoin (SEX): A currency associated with the adult entertainment industry.
SpankChain: A currency used to fund live streaming platforms for pornographic content.
3. Currencies linked to drugs and prohibited substances
PotCoin (POT): A coin associated with marijuana trading.
CannabisCoin (CANN): A currency linked to cannabis products.
DopeCoin (DOPE): A currency intended to finance drug trafficking.
4. Alcohol-linked currencies
BoozeToken (BOOZE): A token tied to alcohol products.
AlcoCoin (ALCO): A coin that supports the alcohol industry.
5. Currencies based on usurious mechanisms
Aave (AAVE): Although the project is technically useful, it uses interest-bearing lending mechanisms.
Compound (COMP): Provides lending and borrowing services with interest.
Maker (MKR): Relies on a financial system that includes interest.
6. Currencies with excessive uncertainty
Shiba Inu (SHIB): It has been classified as haram by some scholars because it relies on excessive promotion and speculation without a solid real project.
Dogecoin (DOGE): It started as a mockery coin and became popular due to hype rather than real value.
Third: How to avoid dealing with prohibited currencies on Binance
Research before investing: Check the primary purpose of the coin and its project through the white paper.
Learn the basics of the project: Research the currency project, its practical applications, and whether it supports prohibited activities.
Avoid Binance products that include benefits: Avoid using services such as:
Binance Earn: Offers interest on deposits.
Binance Futures: Includes margin trading with interest.
Binance Margin Trading: Based on interest-bearing lending.
Commitment to direct spot trading: Buy and sell currencies directly without using leverage or margin.
Consulting specialized scholars: If in doubt, be sure to consult specialists in contemporary financial transactions jurisprudence.
Fourth: Halal alternatives on the Binance platform
Binance offers several currencies that are considered halal according to Sharia standards, such as:
Bitcoin (BTC): If used for spot trading and not with leverage.
Ethereum (ETH): When used in live trading, it is interest-free.
Digital Dollar (USDT): When used as an alternative to the dollar in transactions.
Cardano (ADA): A project based on blockchain development and its applications.
XRP (Ripple): Used to facilitate global payments and transfers.
Binance Coin (BNB): The platform's native currency, if used for live trading.
Solana (SOL): A platform for decentralized applications.
a summary
When trading on the Binance platform, you should avoid currencies that are prohibited by Sharia law and fall under the above categories, namely:
Currencies related to gambling and betting (eg WIN, FUN)
Currencies associated with pornographic content (e.g., PORNROCKET, SEXCOIN)
Drug and alcohol related currencies (e.g., POT, CANN, BOOZE)
Currencies based on interest (such as AAVE, COMP)
Currencies that rely on excessive speculation and do not offer real value (such as SHIB)
You can invest in halal currencies such as Bitcoin, Ethereum, Cardano, XRP, and Binance Coin, while adhering to spot trading and avoiding using services that involve usurious interest.
To ensure your investments are Sharia-compliant, always research and verify each currency before trading, and only trade with currencies that have clear and transparent projects and are free of prohibited transactions.
