Have you ever wondered about the ruling on trading and investing in digital currencies from a Sharia perspective? Are you concerned about usury, or uncertainty, or gambling? These questions are at the center of interest for many Muslims interested in this growing field. But what if we told you that there is a product specifically designed to alleviate these concerns?
In this article, we will explore the "Binance Sharia Earn" program offered by Binance and analyze how it seeks to provide a halal way to earn returns from digital currencies.
Why "Staking" on Binance may be halal?
Typically, the concern arises that returns from digital currencies may be similar to interest on loans, but staking is different. In this context, profits do not come from lending with interest, but are rewards given for your contribution to verifying transactions and securing the blockchain network.
Imagine it as if you are working as an "employee" in the blockchain network. Instead of getting a salary for your manual work, you receive a reward for performing the "verification" of transactions. These rewards are the result of real work and effort, which aligns with Islamic principles that emphasize that profit must come from real work or investment.
The role of the Sharia "agent": Ensuring compliance
To increase reassurance, it is not only about the nature of the work but also includes having a legitimate body for supervision. The "Binance Sharia Earn" program relies on having a qualified "agent" (Sharia advisor) who periodically monitors transactions to ensure they are not linked to prohibited activities, such as:
Fraud and deception: Ensuring that the currencies used have not been obtained through fraudulent means.
Gambling: Ensuring that the core 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.
The framework of the "Agency Contract" and the basic terms
To better understand the mechanisms of the program, you need to understand the legal framework it relies on, which is the "Agency Contract". This contract defines the relationship between the user ("principal") and the Binance platform ("agent").
According to the terms of the program:
The principal (you): Agree to appoint Binance as your agent to invest your portfolio in "Yield Farming Protocol" activities.
The agent (Binance): Responsible for managing your portfolio to achieve returns that comply with the "Sharia Guidelines".
Returns: It is emphasized that the achieved returns are variable and not guaranteed, and depend on factors such as the duration of staking and network activity, which aligns with the principle of "profit and loss sharing" in Sharia.
Agency fees: The agent charges a nominal fee ($0.01), but retains the right to waive it, making the net return for the user higher.
Final legal ruling: Who is responsible?
The most important point in this program is that the final legal ruling is up to the Sharia advisor, who issues a "Sharia Compliance Certificate".
By accepting the terms of service, you irrevocably agree not to contest the final decisions made by the Sharia advisor regarding the program's compliance with Sharia. This means you commit the full responsibility for the legal ruling to the entity you have entrusted to do so.
Final advice for users in the Middle East and North Africa
If you are considering joining "Binance Sharia Earn", it is important to:
Read the terms and conditions carefully: Especially the terms of the "Agency Contract" which clarify your rights and duties.
Make your decision based on your personal reassurance: Although the program is designed to be Sharia-compliant, personal reassurance plays a key role in such transactions.
Make sure you understand the risks: Remember that "staking" returns are variable and not guaranteed, and investing in digital currencies always carries certain risks.
In conclusion, "Binance Sharia Earn" represents a serious attempt by Binance to provide a solution that complies with Islamic standards, reflecting a growing interest in the market in the Middle East and North Africa, but like any financial decision, it should be based on understanding and study.