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Crypto basics

What is riba, and where does it hide in crypto?

Answered by the ShariaQuant team

Riba is a guaranteed increase on a loan of money, and crypto puts it in at least nine places that do not use the word interest. Lending products, borrow markets, funding rates on perpetuals, and most things labelled Earn are the common ones. The tell is simple, if you were promised a return for parting with your coins and getting them back later, you are looking at a loan with an increase.

Riba in plain language

This is Shariah screening and education, not financial advice. Rulings on newer products differ between scholars, so where a question is disputed we say so rather than pick a side for you. If your situation is unusual, ask your own scholar.

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