Bybit, a well-known cryptocurrency exchange, has introduced Islamic accounts to attract Muslim traders who are concerned with Shariah compliance in their financial activities.
These accounts claim to align with Islamic principles, particularly in the areas of interest (riba) and gambling (maysir), two practices explicitly forbidden in Islam.
However, despite these claims, it is crucial to examine whether Bybit’s Islamic accounts are truly halal, considering that even a small element of haram can render the entire system impermissible.
To determine whether a financial product is halal, it must adhere to the following Islamic principles:
For Bybit’s Islamic accounts to be considered halal, they must fully eliminate any presence of these elements.
Bybit has attempted to align its Islamic accounts with Shariah principles by offering interest-free (riba-free) trading.
These accounts are also advertised as swap-free, meaning traders are not charged overnight fees for holding positions, a feature typically associated with interest-based transactions.
At first glance, this might suggest that Bybit is making an effort to comply with Islamic laws. However, further investigation is required to ensure that these accounts don’t involve other prohibited elements, such as maysir or gharar.
Before diving into the specifics of Bybit’s Islamic accounts, it’s important to address the broader question: is cryptocurrency trading halal?
The Islamic scholarly community is divided on this issue. Some scholars argue that cryptocurrency can be considered halal because it functions similarly to other currencies, providing value and a means of exchange.
However, many others raise concerns due to the speculative and volatile nature of cryptocurrencies. Since speculation is closely tied to maysir (gambling), this can make cryptocurrency trading impermissible.
Although Bybit has removed interest and swap fees, other significant issues raise doubts about the halal status of its Islamic accounts:
Based on the core principles of Islamic finance, Bybit’s Islamic accounts cannot be considered fully halal.
While the platform has removed interest charges and swap fees, the remaining issues—particularly leverage, speculative trading, and the volatility of cryptocurrencies—introduce haram elements such as maysir and gharar.
Since even a small amount of haram can render the entire financial product impermissible, the speculative and uncertain nature of cryptocurrency trading on Bybit violates Shariah law.
Therefore, despite some efforts to comply, Bybit’s Islamic accounts are haram under Islamic financial principles. Muslim traders should exercise caution and seek alternatives that fully adhere to Shariah law.
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This post was last modified on September 25, 2024 6:18 pm
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Muslims must play safe as far as religious issues are concerned in dealing with financial matters. Profit must not be the sole criteria. They should be one hundred percent sure that it is halal without any iota of doubt. They should not fall into any trap and for few extra money spoil their Akhira. The Islamophobists are waiting to harm Islam and its followers in all possible ways they can. It should be our foremost aim to defeat such evil forces and also educate our brothers. Wallahu Alam.