Prohibited currencies in trading: What you need to know before investing
With the increasing popularity of digital currencies around the world, extensive discussions have emerged among traders and investors regarding the legitimacy of certain types of currencies. While some view trading in digital currencies as just a normal investment, others believe that there are types of currencies that fall under prohibition due to their nature or purpose of creation.
1. Currencies with a usurious nature
There are digital projects that rely directly on fixed interest (usury) through lending platforms or DeFi protocols that promise investors guaranteed returns. This formula contradicts the principles of Islamic law that prohibit usury, and therefore investing in them is considered forbidden.
2. Currencies linked to gambling and betting
Some currencies were specifically created to feed gambling or betting-based gaming platforms. Despite the quick profits that may attract some, dealing with them is considered forbidden because they are directly linked to illegal activities.
3. Currencies with fictitious or fraudulent projects
There are currencies with no real purpose other than speculation, and they deceive investors through false promises or Ponzi schemes. Such currencies do not offer any real value, and dealing with them falls under fraud and unjustly taking people's money.
4. Currencies that support unethical or illegal activities
There are cryptocurrencies aimed at supporting illegal trade such as drugs or money laundering. These currencies are inherently considered forbidden by law and religion, and dealing with them exposes the investor to accountability.
Summary
Not everything that glitters is gold in the world of crypto. Before investing in any cryptocurrency, the trader must ask themselves:
What is the purpose of this currency?
Does it rely on fixed interest or prohibited activities?
Does it offer a real project or just worthless speculation?
Knowing about prohibited currencies helps the investor protect their money from loss, and more importantly, invest in accordance with values.
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Examples of currencies prohibited by name
1. Currencies with a usurious nature (fixed interest)
HEX: It is known for promises of fixed returns for investors, which resembles usury.
2. Currencies linked to gambling and betting
FunFair (FUN): A currency linked to gambling and betting platforms.
WINkLink (WIN): A project focused on betting and luck-based entertainment games.
3. Currencies with a fraudulent or pyramid nature
Bitconnect (BCC): A historical example of a currency that collapsed after operating under a Ponzi scheme.
4. Currencies used in illegal activities
Monero (XMR) and Zcash (ZEC): Although they are privacy-oriented currencies, some entities use them in dark markets and money laundering.
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🔍 Important note:
Not all uses of these currencies are inherently forbidden, but the primary purpose for which they were created or the vast majority of their transactions is what makes them a subject of controversy and prohibition among many jurists.
The final decision on prohibition or permissibility rests with official religious fatwas, and these are just examples #RedSeptember #MarketPullback #SaylorBTCPurchase #USGDPDataOnChain
