Binance, as one of the largest cryptocurrency exchanges in the world, offers many financial services. However, there are some tools and services that are not compatible with Islamic law, and in this article I will explain these services to you.

First, lending and interest services (Earn Services):

Binance offers programs such as Flexible Savings and Locked Savings, which allow users to store their cryptocurrencies in exchange for fixed or variable returns.

The legal problem:

These returns are considered usurious interest because they provide increases to the original capital without any real investment, in addition to specifying the percentage of secondary or flexible returns, which is forbidden in Islam.

Examples:

1- Earn

2- Simple Earn

3- Super Earn

4- On-Chain Yields

Secondly, financial leverage:

Binance offers leveraged trading services in sections such as Futures and Margin Trading, where a user can borrow funds to trade in amounts greater than their balance.

The legal problem:

Using borrowed money with interest falls under usury.

These funds are linked to exorbitant interest or commissions, which is contrary to the principles of Sharia.

Examples:

1- Margin Trading

2- Futures Contracts

Third: Staking services guaranteed with fixed returns:

Digital storage services such as Staking or Locked Staking offer returns based on storing coins for specified periods.

The legal problem:

Fixed returns are like usury, especially if there is no clarity about how the returns will be achieved.

Examples:

1- ETH Staking

2- SOL Staking

Fourth: Futures:

Binance allows users to trade futures contracts that are purely speculative, carry significant risk, and are often not tied to actual ownership of the coins.

The legal problem:

Futures involve bets on currency prices, which is gambling.

God Almighty said:

O you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone alters [to other than God], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful.

(Surat Al-Ma’idah: 90)

High risk and excessive speculation make it incompatible with the principles of Sharia investment.

5. Lending programs:

These programs allow users to lend cryptocurrencies in exchange for guaranteed interest.

The legal problem:

Any conditional increase on the loan is considered forbidden usury.

Examples:

Programs like Binance Loans and others:-

Vip Loan

Cryptocurrency Loans

Fixed rate loans

Sharia ruling:

All these services are based on the interest system or usurious speculation, which is forbidden in Islam. Allah Almighty said:

God has permitted trade and forbidden usury (Al-Baqarah: 275)

God Almighty has forbidden usury because it is unjust and exploits the poor, disrupts social justice, and corrupts the economy.

God Almighty has threatened those who deal in usury with war from Him and His Messenger, and this is a great threat that indicates the seriousness of this act. God Almighty says:

“But if you do not, then be informed of a war from Allah and His Messenger.” (Surat Al-Baqarah: 279)

(The word of God is absolute and there is no debate about it)

God's commands are based on perfect knowledge and wisdom. God Almighty said:

His command is only when He intends a thing that He says to it, “Be,” and it is.

(Surat Yasin: 82).

Therefore, we as Muslims believe that everything that God has commanded or forbidden is absolutely good, whether we understand the wisdom or not.”

We ask God to keep us away from forbidden things and to guide us to obey Him in everything we do.

Legitimate alternatives for Muslims on Binance:

1- Spot Trading:

Buy and sell cryptocurrencies instantly without using any leverage or interest.

2- Long-term holding (HODLing):

Buying reliable currencies and keeping them for long periods without resorting to lending services or interest. An article explaining this within the limits of Islamic law will be downloaded.

3- Cold Wallets:

Store digital currencies in offline wallets to ensure security and avoid dealing with usury services.

in conclusion:-

Muslims should be wary of and stay away from instruments that rely on interest or excessive speculation. Sharia-compliant trading is based on transparency and ownership of actual assets without any usurious transactions.

O Allah, keep us away from what is forbidden, provide us with what is lawful, and bless us in our livelihood and our work.

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