The Existence of Riba in the Products of Cryptocurrency Exchange Companies

Muhammad, N; Syed Alwi, S. F.

doi:10.7187/GJATSI072024-3

Authors

Muhammad, N Academy Contemporary Islamic Studies, Universiti Teknologi MARA (UiTM), Cawangan Terengganu, Kampus Dungun, Sura Hujung, 23000 Dungun, Terengganu, Malaysia
Syed Alwi, S. F. Arshad Ayub Graduate Business School, Universiti Teknologi MARA (UiTM) Shah Alam, 40450 Shah Alam, Selangor Darul Ehsan, Malaysia

DOI:

https://doi.org/10.7187/GJATSI072024-3

Keywords:

Cryptocurrency, Exchanges, Riba, KuCoin, Huobi

Abstract

This paper intends to examine the existence of riba elements (interest) in the products of cryptocurrency exchange companies locally in Malaysia and the international. Two of the chosen international cryptocurrency exchange companies, namely Huobi and KuCoin, and one local company, Luno Malaysia Sdn. Bhd., were analyzed based on their websites and applications. It was found that riba exist in the products offered by international cryptocurrency exchange companies, specifically crypto loans, and lending. Meanwhile, the local one does not offer a product that generates riba. It can be concluded the two products that generate riba seem to be mirroring foreign exchange trading, which comprises leverage and margin in loans and lending. Hence, it is suggested not to subscribe to lending and loans products offered by international cryptocurrency exchange companies. This study implies for Muslim investors, who deal with cryptocurrency. It is recommended to do future research on awareness of riba in the products of cryptocurrency exchanges among Muslim investors.

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