Binance USD (BUSD) - Generally Not Permissible
Binance USD (BUSD) is classified as "Generally Not Permissible" based on scholarly analysis of its underlying technology, use case, and compliance with Islamic financial principles.
Shariah Assessment
BUSD was a regulated stablecoin backed by US dollar reserves including Treasury bills. Same riba concerns as USDT/USDC regarding reserve composition. Additionally tied to Binance, raising the same exchange-token concerns as BNB.
BUSD has been largely wound down by Paxos. Included for historical reference and any remaining holders.
Scholarly References
- Same scholarly concerns as USDT/USDC regarding reserve composition
Last reviewed: December 1, 2024
Frequently Asked Questions
Is Binance USD (BUSD) halal to invest in?
According to scholarly analysis, Binance USD (BUSD) is classified as "Generally Not Permissible". BUSD was a regulated stablecoin backed by US dollar reserves including Treasury bills. Same riba concerns as USDT/USDC regarding reserve composition. Additionally tied to Binance, raising the same exchange-token concerns as BNB.
What do scholars say about investing in Binance USD?
Key scholarly references include: Same scholarly concerns as USDT/USDC regarding reserve composition. BUSD has been largely wound down by Paxos. Included for historical reference and any remaining holders.
Is cryptocurrency investing halal in Islam?
Cryptocurrency investing is a topic of scholarly debate. Some scholars permit it as a form of digital property, while others express concerns about speculation (gharar). The permissibility often depends on the specific cryptocurrency's use case, backing, and whether it involves prohibited elements.
Do I need to pay Zakat on Binance USD?
If you hold Binance USD as an investment and your total holdings exceed the Nisab threshold, Zakat is generally due at 2.5% of the market value. Use Mizaan's Zakat calculator to compute your obligation based on your specific madhab.