Is Binance APR Haram? (2024)

FAQs

Is apr in crypto halal? ›

Most of the services offered by the binance or other centralized exchanges are haram because they are just like savings account, you deposit and earn interest (yield) over it.

Trading cryptocurrencies is like trading other currencies, if it is used normally and not in a forbidden way, it is halal according to Sharia, but if these currencies are used in something that angers God, they are haram according to Sharia, such as usury and gambling.

Crypto in general is halah to buy, sell or keep as an asset, but for binance (or any other exchange) only spot trading is halal, so margin trading, futures, staking, defi staking, earn services, loans, dual investments, borrowing ALL are Haram, and binance in particular even for normal staking gives you the rewards + ...

Locking in your coins for longer gives you a better return – again, this is permissible in our view – as you're not getting paid more interest, you're getting paid a higher share of the profit share in our analysis. You are lending your coins for interest. This is haram.

An APR is an interest rate and is prohibited in Islam. Simplicity of Contracts: Islamic Sharia principles dictate that transactions should always be honest, transparent and open.

The International Islamic Fiqh Academy is basically of the view that if usurious interest is imposed on the borrowed amount, then the credit card in question is impermissible in Shariah. Even if the cardholder pays before interest is charged on the amount, a credit card involving interest is haram in Islam.

Binance is facing a regulatory onslaught tied in part to the secretive way it operates around the globe. The U.S. Securities and Exchange Commission in June sued Binance and its founder, Changpeng Zhao, for allegedly operating illegally and misusing customer funds.

Staking as a concept is not Islamically problematic. It is simply a rule-based approach used by a crypto project to decide who will get the right to add to the blockchain.

You can verify the authenticity of email addresses and website links on Binance Verify. Users should still exercise caution if the link appears as “Verified” and avoid links appearing as “Source Not Verified.”

Most scholars hold BNB to be halal. We also share this view. The essence of the debate on whether cryptocurrencies are halal comes down to whether they are 'Māl' as we have explained previously. Māl is something that can be acquired, whether it be an item or a service.

Which cryptos are halal? ›

Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram. To use CryptoHalal, a user must enter the name of the cryptocurrency.

FAQs. Is trading haram in Islam? Trading is not haram, provided that there is 1) no interest element, 2) trades are conducted “hand to hand”, and 3) the stocks, commodities, or currencies purchased do not offend against the tenets of Islam.

Islam forbids both receiving and paying interest (riba). Many of us can end up accumulating interest through our bank accounts even if we don't want it, so what should we do with it? Since it is not permissible to use riba for one's own benefit, we should donate it to charity.

(1) is straightforwardly permissible. (2) is also permissible in our view as the activity of racing with other miners with your computational power to “solve” this puzzle is intrinsically not haram.

Day trading is generally seen as permissible – here's a fatwa link. However, there are scholars who do disagree with this.

Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram. To use CryptoHalal, a user must enter the name of the cryptocurrency.

💡 The crypto APR is the annual interest rate offered to customers who lend their tokens or crypto assets for borrowers to access at investment companies or cryptocurrency exchanges. Investors' crypto assets will be locked for a certain period of time, and they will receive a larger fixed rate of interest.

Cryptocurrency does not involve charging or paying interest, as it is a decentralized currency that operates without the need for traditional banking institutions. Therefore, in this regard, cryptocurrency aligns with the principle of the prohibition of interest in Islamic finance.

Staking as a concept is not Islamically problematic. It is simply a rule-based approach used by a crypto project to decide who will get the right to add to the blockchain.