#MarketTurbulence Why might staking on Binance be halal?
The concern is usually that cryptocurrency returns may be similar to interest, but staking is different. In this context, profits from lending are not interest-bearing, but rather rewards given for your contribution to verifying transactions and protecting the blockchain network.
Imagine yourself as an "employee" on the blockchain network. Instead of receiving a salary for your manual labor, you are rewarded for "verifying" transactions. These rewards are the fruit of real work and effort, which aligns with Islamic principles, which emphasize that profit must come from real work or investment.
The Role of the Sharia "Agent": Ensuring Compliance
To increase reassurance, the issue is not limited to the nature of the work, but extends to the presence of a legitimate oversight body. The Binance Sharia Earn program relies on a qualified "wakeel" (Sharia advisor) who periodically monitors transactions to ensure they are not linked to prohibited activities, such as:
Fraud and Scams: Ensuring that the currencies used were not fraudulently obtained.
Gambling: Verifying that the underlying activities do not fall under the concept of gambling.
Non-compliant Sources: Ensuring that exposure to non-compliant sources does not exceed 5%, known as the "purification ratio" in Islamic financial transactions.
