Crypto Question: Is Binance Coin BNB halal?

Asalam o alaikum , I need help regarding this investment of mine wheter it’s HALAL or not . I see this company has become big to where they are giving interest based loans and for this reason I am starting to lean on it being HARAM . Furthermore I want to participate into IEOS(Initial Exchange Offerings) but in order to this I need to HOLD the token so I stand a chance in a lottery style distribution of the token.

https://www.binance.com/en/support/articles/b8e11c5870ba4d16810839473e69a90d
this is the IEO I would like to participate in and is the distribution of the token halal ?

Assalaamu alaykum,

Kindly see the following research paper to get an understanding of what makes Crypto-assets halal and Haram:

Dear Mufti I have read the article and I want to confirm things because I want to assure that in the article when explaining you gave example on BTC, XRP, LTC , and Maker is that mean all the four mentioned currency are Halal ?!

Assalaamu alaykum Mufti

I am new to investing and have recently bought some Cryptocurrencies and Tokens. However, I am very worried that I might be investing into tokens and coins that may not be Shariah compliant.

I have read the document about ‘The Shariah factor in Cryptocurrencies and Tokens’. In the document it refers to different types of tokens and coins under ‘Shariah Analysis of cryptocurrencies ‘

I was wondering if you are you able to provide me a list of different Currency coins, Work tokens, Utility tokens, Asset-backed tokens, Revenue Tokens, Equity Tokens and Buy-back Tokens

I look forward to your reply.

Jazak Allah

Wa alaykum salaam,

BTC, XRP and LTC are Shariah compliant in my personal view.

Jazak Allah Mufti saab for your reply. How can I get other coins and tokens screened. I’ve been trying to contact Amanah Shariah Advisory Service for screening but no response.

I would be grateful if you could point me the right direction as I am struggling understand all the guidelines that I have looked for screening which I have come across via this forum. This largely due to lack of my knowledge.

Hope this all make sense.

Jazak Allah

Assalaamu alaykum,

You are welcome to ask which tokens you had queries on here. If I have reviewed them, I will give you feedback Insha’Allah.

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Assalaamu alaykum Mufti,

I also have been trying to reach Amanah Shariah Advisory Service for screening but there has been no response to my email and the phone number seems to be switched off.

Would you be able to advise me on ADA, ATOM, VET and XLM? I worry that I am holding non-compliant crypto in my portfolio.

The only ones I have been assured of are BTC, ETH, LTC and XRP because they are listed on our local Shariah Compliant exchange in Bahrain.

Jazak Allah Mufti for your guidance and aim to enlighten us.

Wa alaykum salaam,

ADA is somewhat of a platform token which fuels the Cardano platform. Its primary motive is to provide quick and safe currency exchange and allow users to operate various Smart Contracts and applications seamlessly. As such, ADA is fine.

Since ATOM is merely governance for digital infrastructure and not governing anything non-compliant, it will be permissible.

I will have to review VET and XLM.

Jazak Allah Mufti, your swift response is greatly appreciated. How about exchanges? Do we have to ensure an exchange is compliant to purchase/trade through it or is it merely regarded as a medium of exchange ie. virtual marketplace?

To be more clear, is it permissible to hold Shariah Compliant assets on any exchange?

A Shariah compliant exchange is always the best to use if there is one. That would ensure you are dealing with an end-to-end compliant platform.

But the key focus for the individual investor is the actual trade and the underlying asset of the trade.

Allah knows best

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Thank you again, Mufti. So taking into consideration ADA for example, since it was not on my local Shariah Compliant exchange or any others in my region, I have purchased it through Binance. I just hold it there (no interest earned on it). Is that fine or do I have to move it to what’s called cold wallets or hot wallets? Keeping in mind that transferring it to those wallets are risky in terms of the transfer method for newbies and potential to lose everything if the key/password is lost.

You can keep it in Binance.

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Jazak Allah khair Mufti.

Assalaamu Alaykum Mufti

In terms of XLM, I came across this Sharia certification for it: https://www.stellar.org/files/sharia-certification-stellar?locale=en

Of course this is from 2018, so would love to hear from you once you have reviewed it.

Also, if/when you have the time, please can you review some of these cryptos: LINK, XTZ, DOT, NEO, ZIL, OCEAN, CVC, STORJ and SAND?

And I’d really appreciate it if you could send me a link/document with criteria on how to determine if a cryptocurrency is Shariah Compliant. I’ve been reading the whitepapers of the cryptos I invest in, but I don’t think I have the knowledge or experience to always determine whether they are Shariah Compliant or not so I usually just skip the ones I am doubtful about.

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I look forward to the Mufti’s response to this too as although XLM seems to have been reviewed by the SRB licensed by the Central Bank of Bahrain, the one and only crypto exchange in Bahrain called Rain (started up in 2019) has not listed XLM in on its platform yet.

Thank you so much Mufti Faraz, for having screened ‘investing in ADA’ for us,

Would staking ADA also be permissible?
Technicals regarding staking ADA: - When the ADA coin is staked inside the pool, this helps transactions to be processed quicker and allows for the minting/ creating of new blocks.

JazakAllah Hu Khair for all of your help
Umair

Assalaamu alaykum Mufti,

I’m looking at getting a crypto card from swipe wallet, I need to have SXP tokens in order to use the wallet. I recently discovered that they will eventually have a interest based savings option without lending and borrowing.

I want to know if it’s haram to hold the token even if I never intend to use the savings mechanism they’re adding

Assalamualaikum Mufti saab

Sorry the list is long. I would be grateful if you can you advise which tokens/coins are permissible. Once again thank you for your valuable time.

SOL - Solana
BCH - Bitcoin Cash
DASH - Dash
ADA - Cardano
ZEN - Horizen
OMG - OMG Network
DOT - Polkadot
ZEC - Zcash
VET - VeChain
DOGE - Dogecoin
ALGO - Algorand
WAVES - Waves
SNX - Synthetix
1INCH - 1inch
BNB - Binance Coin
EOS - EOS
GRT - The Graph
TRX - TRON
CHZ - Chiliz
ZIL - Zilliqa
ATOM - Cosmos
LINK - Chainlink
XMR - Monero
XEM - NEM
XTZ - Tezos
NEO - Neo
FIL - Filecoin
DGB - DigiByte
BAT - Basic Attention Token
EGLD - Elrond
SAND - The Sandbox
HOT - Holo
NANO - Nano
DNT - district0x
WBTC - Wrapped Bitcoin
INJ - Injective Protocol
RSR - Reserve Rights
FET - Fetch.ai
WABI - Wabi
HBAR - Hedera Hashgraph
BAND - Band Protocol
POWR - Power Ledger
NPXS - Pundi X
CVC - Civic
KEY - Selfkey
CTXC - Cortex
RLC - iExec RLC
LTO - LTO Network
MATIC - Matic Network
OCEAN - Ocean Protocol
SRMX - StormX
MIOTA - IOTA
OG - OG Fan Token
ASR - AS Roma Fan Token
FIRO - Firo XZC
KSM - Kusama
ICX - ICON
ANKR - Ankr
SUSHI - SushiSwap
UNI - Uniswap

Assalaamu alaykum Mufti.

Did you get a chance to look into VET and XLM? Is there any other number/email you can share please to reach Amanah Shariah Advisory Service for portfolio screening?

As I would also like to ask about MATIC, LUNA, ROSE and SNX.

Jazak Allah khair.