Assalamualaikum, our brother from crypto ummah considering $UNI which is a dex coin as halal to invest in. but the thing that I’m not comfortable with is that the swap utility not only can swap halal coins but also can be used to swap haram coins, so is it permissible to invest in a coin that can help people to swap haram coin?
Walaikum Salam,
It’s a good question and we should all be looking at things in this level of detail.
Unfortunately, with any crypto, it’s not a simple halal and haram option. Many coins have aspects of both. What we have to do when screening is look for coins with reduced levels of haram activities, which effectively reduces the possibility of it being haram. It may sound odd, but that is how Islamic finance is structured. For example, companies that have less than 5% of their income from haram activities are considered halal. We can all accept interest is haram, but in practice companies with up to 30% interest-based debt are considered halal.
For crypto we need to adopt a similar methodology and think something along the lines of 15-20% haram may be acceptable (depending on the activity). 30-40% may also be halal, but obviously not as halal as something that is only 20% haram.
This will make a lot more sense when we publish our latest screening reports, in which we have given each coin a Shariah compliance score. Users will be able to see which coins are the most halal and carry the least haram risk, and which parts may be haram, so they know the aspects to avoid entirely.
This is where your personal halal/haram risk profile comes in. You can then decide if you need/ want to stray for something a bit less halal when plenty of more halal options are available.
Now, to your question: Can we invest in a coin that can be used to swap Haram coins? Personally, I think we can, but with caution. The £ or $ in your pocket can be used to buy alcohol as well as halal meat. Alcohol will remain haram and the halal meat will remain halal, regardless of the interest-based haram currency used to pay for it.
What I mean in relation to UNI is that haram aspects will remain haram, although the coin may have been classed as halal. You cannot swap haram coins or engage in haram activities just because the platform allows it.
This is just an opinion, but hope that helps.
thank u so much brother thanvir to answering my question. but let me ask u again, as we know dex is a place where u can exchange coins and the owner of the dex is getting profit by taking fees from the transaction.
so what I am still uncomfortable with is I analogize dex as merchant and the merchant is selling coins, but the coins are not all halal it was like a merchant selling halal and haram food, and investing in this type of merchant is not sharia-compliant cz they take profit from selling haram products.
so what u think about my analogy? am I wrong, and dex coins can still shaira compliant?
i found investing in dex also similar like investing in merchant such as amazon
may Allah grant us jannah for our obedient and save us from jahannam
furthermore, my reason to ask this question is because I want to invest in $XOR coin(sora) but I need to do research first, the only thing I have problem with is the coin have swap utility. and apparently, If this coin is halal i really recommend u to buy this coin then sleep and hold until the end of Q4 2024 when the CBDC narrative is coming plus this coin is at the bottom of the price so the upside potential is astonishing