Cryptocurrency trading

Salam brother

Can i purchase cryptos as investment to buy when valued at low price
Also can i trade this with prefered broker Vantage as they are the only one i believe to be shariah complaint

Wa alaykum salaam,

Trading in Crypto-assets depends on the Shariah compliance of the crypto-asset in question.

Each crypto needs to be reviewed before investing in it.

Allah knows best

how would you check if a crypto is shariah compliant?

i thought it is more considered a currency due to likes of different places excepting i.e bitcoins as payment.

There are different types of Cryptos. Not all of them are designed as payment systems.

You can send one crypto name here and I can check for you.

1 Like

thank you for response
XRP

Ripple is Shariah compliant.

Allah knows best

Since it requires some level of understanding of Islamic finance, I plan to do a course on this very soon which will go through the screening methods for Crypto-assets.

Wa alaykum salaam,

Interest-based leverage is not permissible.

Allah knows best

Salaam Mufti Saab,

Do you have an idea on when this course will be available and where I will be able to do it? Will it be with IFG?

Jzk

Wa alaykum salaam,

This course will be available soon. It is not with IFG, but I can potentially look at doing this course with IFG. The course that I have developed is with a Dubai-based Islamic Finance education company which will be launching its products soon.

Regards

A Shariah compliant exchange called Sustain is launching very shortly. I am on the Shariah board and we will be screening a Cryptos for Shariah compliance. All listed tokens will be Shariah compliant.

1 Like

Salam brother,

May I ask you a question related to the crypto World.
I’ve recently discover the project of the company Celsius Network which in my view could bring a big change in the traditional banking world.
However it is still financial services and I am worried that participate in this project may not be allowed for a muslim…

What’s you view on that please ?

Thank you

Wa alaykum salaam

Celcius Network allows you to deposit your Crypto-asset and earn interest on it.

I am aware that they are currently doing an A-round of funding. It would not be Shariah compliant to get an equity stake in Celcius.

Thank you for your answer !

As Salam Alaikum Mufti Faraz,

Could we trade Shariah complaint tokens/altcoins to increase the amount of Bitcoin, for example if you buy 50000 XRP @ 0.00002000 BTC using 1 BTC whose monetary value is £7500 and sell 50000 XRP when it reaches 0.00004000 BTC , thereby doubling your 1 BTC to 2 BTC even though the monetary value of 1 BTC might have fallen to £6000.The sole objective of this trade is to accumulate more BTC irrespective of the price and not in the underlying technology of the token/altcoin.

Regards

Wa alaykum salaam,

Yes, this is permissible.

1 Like

Slm Alkm Mufti Faraz,

While waiting for Sustain to go live, which platform do you recommend for buying of cryptocurrency ?
Secondly, what is your view on Cardano / ADA, halal or not ?

Assalam Mufti Faraz,

Hope you can advise the halal status of these 2 cryptos:

  1. Crypterium (CRPT) for Crypto Payment App
  2. Ox (ZRX) for Secure Crypto Trading

Jzkk for your kind help.

Assalam,

It depends on the crypto you are planning to buy. I am currently using Binance and KuCoin platforms. As for wallet to keep the cryptos, I am using MyEtherWallet (MEW).

Hope that helps.

with Sustain do you know how cryptocurrency pairs they offer for consumer to trade/invest