Binance has announced the launch of a new product called Sharia Earn, offering staking services for Sharia-compliant investors. This also raises questions about the permissibility of various cryptocurrencies.
Sharia-Compliant Crypto Service
Binance has launched a new product, claiming to have received approval for its religious compliance. The service, Sharia Earn, will be available to over 275 million users globally. The company states its commitment to developing products that cater to the diverse needs of its global community. With Sharia Earn, users can grow their crypto assets while adhering to Islamic financial principles.
What distinguishes this service from other Earn services? Traditional staking products follow standard financial models, whereas Sharia Earn is structured in accordance with Islamic finance’s core principles. Binance further explains that a global Sharia advisory firm, Amanie Advisors, certified user assets, ensuring they align fully with Islamic finance principles.
Permissible Cryptocurrencies
Sharia Earn has vetted and approved three cryptocurrencies as Sharia-compliant: BNB, ETH, and Solana (SOL). Wrapped versions such as WETH and BNSOL are also included. Binance has affirmed that this decision considered standards set by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
The opinion of a consultancy firm may not be universally binding, but Binance has made a significant start by considering religious sensitivities. While the advisory board provided compliance approval, they have not yet shared a detailed report regarding its religious permissibility. In Malaysia, conditional permissibility is a common view among Islamic scholars. However, Turkey's Diyanet declared in 2017 that cryptocurrencies are impermissible due to uncertainty (gharar) and deception (taghrir).
Who Are Amanie Advisors?
Amanie Advisors is a firm providing Sharia law consultation since 2005, focusing on investment funds, sukuk (Islamic bonds), and corporate consultancy and auditing. The founder is Tan Sri Dr. Mohd Daud Bakar. The firm, headquartered in Malaysia, advises over 100 Islamic investment funds across the Middle East, Southeast Asia, and Europe.
The launch of Binance's Sharia-compliant service marks an important step in acknowledging religious aspects within the cryptocurrency market. By offering compliant services, companies show readiness to adapt to the needs of diverse investors.
