Binance Launches Sharia Earn for Halal Crypto Staking

Binance, a major cryptocurrency exchange, has introduced Sharia Earn, a multi-token staking platform that adheres to Islamic financial principles. This platform is the first of its kind globally, aiming to provide a more inclusive financial product that aligns with Islamic guidelines. The launch of Sharia Earn marks Binance's entry into the Islamic finance sector, offering users a way to earn yield within the parameters of Sharia-compliant products.

The platform has been certified by Amanie Advisors, a prominent Sharia advisory firm, ensuring that all assets are managed in accordance with Islamic finance principles. These principles include the prohibition of interest (riba), excessive uncertainty (gharar), and investments in forbidden activities such as alcohol, gambling, or adult content. Sharia Earn utilizes a Wakala agreement, a structure that enables the halal delegation of capital, ensuring that all funds are invested in ventures permissible under Islamic law.

Sharia Earn initially supports Binance Coin (BNB), Ethereum (ETH), and Solana (SOL). The product will be available to users in 31 countries, including Afghanistan, Bangladesh, Egypt, Indonesia, and the United Arab Emirates, with plans to expand to additional jurisdictions. The underlying technology of Sharia Earn is based on Binance Earn’s BNB Locked Products, ETH Staking, and SOL Staking, all of which have been reviewed by Sharia scholars.

For BNB, rewards are generated on-chain through the Simple Earn Locked Products and are distributed daily at a variable rate directly into users' Spot Accounts. For ETH and SOL, users receive WBETH and BNSOL upon subscription, which reflect both the principal and accumulated halal rewards. Binance argues that the Islamic finance market is over $4 trillion, but the ambiguity around religious compliance has prevented millions of Muslims from entering decentralized finance (DeFi) and earning passive income in crypto.

To promote the launch, Binance is running two campaigns with up to $100,000 in USDT rewards. The exchange aims to bridge the gap between Islamic finance and blockchain technology, providing a halal investment option that aligns with the principles of risk sharing, wealth circulation, and the prohibition of interest and excessive uncertainty. This initiative underscores Binance's commitment to expanding financial inclusion and offering innovative products that cater to diverse user needs.