Introduction

With the significant expansion in the use of digital currencies and modern financial technologies, trading platforms like Binance have become among the most popular platforms worldwide. However, many Muslims question the legal ruling on depositing money in these platforms, given the services they include that may touch on usurious concepts or transactions tainted by excessive uncertainty.

This article aims to provide a comprehensive and balanced juristic analysis of the issue of depositing funds on the Binance platform, focusing on its permissibility or prohibition in terms of the nature of the process and its objectives, based on sources of Islamic law (the Holy Quran, the prophetic tradition), and the opinions of contemporary scholars specialized in Islamic economics.

First: Concept of Depositing on the Binance Platform

Depositing in the context of cryptocurrency platforms means placing money (digital currency or traditional cash) in a personal account for the purpose of storage, trading, or investing within the available services. On the Binance platform, users can deposit funds to participate in:

  • Buying and selling operations for digital currencies.

  • Investment programs such as lending or staking.

Depositing is in itself permissible according to Islamic law and is considered a trust if it is free from usury or prohibited benefits. Scholars have agreed on the permissibility of trusts, as Ibn Qudamah said:

"The trust is unanimously permissible"
[Ibn Qudamah, Al-Mughni, 5/248].

Therefore, depositing money on the Binance platform is not considered forbidden in itself, unless it is associated with uses contrary to the legal controls.

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Third: Cases in which the deposit becomes forbidden or questionable

1. Dealing in usury through lending or staking

Participation in lending or staking programs that guarantee fixed returns falls under the category of forbidden usury, as stated in His saying:

﴿And Allah has permitted trade and forbidden usury﴾
[Al-Baqarah: 275].

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2. Trading currencies linked to prohibited activities

Sharia prohibits dealing in digital currencies linked to illegal activities (such as gambling, pornography, or terrorism), even if available on the Binance platform.

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3. Futures trading and leverage

These practices include what is known as short selling and leverage, which involve excessive uncertainty and risk, and the Prophet ﷺ prohibited excessive uncertainty.

"The Messenger of Allah ﷺ prohibited selling with excessive uncertainty."
[Narrated by Muslim].

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4. Fraud or manipulation in trading

This includes random speculations or using misleading information, which also falls under excessive uncertainty and ignorance.

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Fourth: Necessary Conditions for Making the Deposit Permissible

For the deposit on the Binance platform to be halal and permissible, the following conditions must be met:

  1. Sincere intention for Allah: the purpose should be lawful trading and not usury or gambling.

  2. Avoiding usurious programs: like lending or staking that yields a fixed return.

  3. Choosing halal currencies: ensuring that the digital currency is not linked to prohibited activities.

  4. Avoiding trading with leverage or high-risk derivatives.

  5. Actual ownership of the currency before selling it: it is not permissible to sell what one does not own.

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Fifth: Scholars' Opinions on Digital Currencies

The disagreement among scholars regarding the ruling on digital currencies remains, but the trends can be summarized as follows:

  • Permissibility of using it as a means of exchange if it meets the conditions of money (such as value, rarity, and general acceptance).

  • Prohibition of using it in usurious transactions or prohibited activities.

  • The necessity of legal organization and oversight, according to the objectives of Sharia.

Sheikh Dr. Abdullah bin Muhammad Al-Mutlaq (a member of the Senior Scholars Committee) indicated that digital currencies entail significant risks, and the final ruling requires clear legislative regulation and in-depth study.

Conclusion

Based on the above, depositing money on the Binance platform is not forbidden per se, but its legal ruling depends on the nature of its use after the deposit. If the user limits themselves to lawful trading, chooses permissible currencies, and avoids usury and excessive uncertainty, then the deposit is permissible, God willing.

The intention of the Muslim and their awareness of the transactions they conduct through the platform determine the permissibility of their actions.

References and Sources

  • Ibn Qudamah, Muwaffaq al-Din. Al-Mughni. Dar Iḥyāʾ al-Turāth al-ʿArabī, Beirut.

  • Al-Qurtubi, Abu Abdullah Muhammad bin Ahmad. The Comprehensive Book of Quranic Rulings. Dar Iḥyāʾ al-Turāth al-ʿArabī, Beirut.

  • Al-Bukhari, Muhammad bin Ismail. Sahih Al-Bukhari. Dar Tawq al-Najat.

  • Muslim, Muslim bin Al-Hajjaj. Sahih Muslim. Dar Iḥyāʾ al-Turāth al-ʿArabī.

  • International Fiqh Academy. Decision No. 237 (24/8) regarding electronic currencies, the twenty-fourth session, 2019.

  • Binance Academy. What is Cryptocurrency? https://www.binance.vision

  • Khan, M. F. (2021). Islamic Finance and Digital Currencies: A Contemporary Analysis. Journal of Islamic Economics, Banking and Finance, 17(3), 45–62.