Trading Crypto using AI apps
| Fatwa #1024 | Category: Business & Trade | Country: | Date: 13th December 2023 |
| Fatwa #1024 | Date: 13th December 2023 |
| Category: Business & Trade | |
| Country: | |
Question
السلام عليكم ورحمةالله وبركاته
Can we trade from OKX n ITP Pro?
An app that uses AI to scans the global crypto currency exchange to find the best rates for buying and selling a crypto currency called USDT.
Example:
If one exchange offers at 99cents and another at 95cents per coin. The AI will automatically sell at 99 and repurchase at 95.
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
It is difficult to issue a ruling regarding all apps without personally using the said apps and experiencing how they operate.
Nevertheless, there are certain guidelines which can work as markers to determine permissibility or impermissibility of such trading.
- The purchase or sale of crypto for cash or vice versa occurs on a cash basis and not on a credit basis.
- There is no guaranteed return. Returns must be based purely on performance of the currencies in the market.
- The structure is not set up as a multi-level marketing scheme. Although multi-level marketing is not impermissible by default, there are a lot of issues with such structures which are unethical.
From the ITP document that was attached in the query, we understand that 2.5% is an earning guaranteed per day. As stated above, earnings must be purely performance based and cannot be guaranteed in any way.
And Allah Ta’āla Knows Best
Mufti Bilal Pandor
Concurred by
Mufti Muhammad IV Patel
Darul Iftaa Mahmudiyyah
Lusaka, Zambia