⚖️ Cryptocurrency & Islamic Finance: Permissible vs. Prohibited✅ Permissible (Halal) Crypto Activities
Spot Trading
Buying/selling actual crypto assets (no leverage, no borrowing).
Condition: Must avoid haram coins (e.g., gambling/platform tokens).
Staking (Non-Guaranteed Rewards)
Earning blockchain rewards (PoS) if returns are variable, not fixed.
Islamic Crypto Loans (Qard Hasan)
Interest-free lending (e.g., decentralized charity loans).
Asset-Backed Tokens
Sharia-compliant RWAs (e.g., gold-backed tokens, halal commodity tokens).
❌ Prohibited (Haram) Crypto Activities
ActivityReason for ProhibitionIslamic AlternativeLeverage TradingGharar (excessive uncertainty)Spot trading onlyFutures/OptionsSelling what you don’t ownPhysical crypto ownershipCrypto Lending (Fixed Interest)Riba (usury)Profit-sharing models (Mudarabah)Short SellingSelling borrowed assetsLong-term investingPrediction MarketsMaysir (gambling)Fundamental analysis
💡 Key Principles for Muslim Crypto Users
Avoid Riba: No fixed-interest products (e.g., Binance Earn locked staking).
Minimize Gharar: Trade only what you own (no margin/derivatives).
Reject Gambling: Avoid meme coin speculation, pump-and-dump schemes.
Transparency: Use decentralized audits (e.g., Etherscan) to verify halal compliance.
#IslamicFinance #HalalCrypto