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Investing In COIN Stock
Following is an excerpt from an article.
“The primary business activity of a business has to be sharia-compliant (avoid haram such as gambling etc). Coinbase principally is an exchange where investors can buy and sell crypto. This in and of itself is totally fine but an issue arises when the assets being sold are impermissible.
Coinbase definitely do facilitate the trading of impermissible assets, such as Compound for example. Compound allows investors to earn interest on their crypto assets, which is clearly impermissible. So at best, this is a grey area.
The argument for it being fine is that Coinbase is simply a broker providing the platform for transactions to take place. It is like a marketplace that rents out a shop – which may or may not sell haram goods. The argument against though is that Coinbase has a choice on what crypto assets it brokers and it is more than just renting space on its platform – it is facilitating the trade. We personally lean more to the “against” argument.”
Do you agree its haram on the basis of the reason mentioned above?
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1 Reply
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Investing In COIN Stock
updated 1 year, 10 months ago
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Please take some time to understand the religious principle and then you can apply it to any kind of financial transaction to find out if it is permissible or not.
Discussion 36403 • Reply 36421
I do not know the business model of Coinbase or Compound so I would refrain from giving a definitive answer, but please understand that riba is generally a concern only in loan transactions.
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