Trading on a crypto exchange group

Q: I have a question about a certain crypto exchange group called “mega”. Basically it’s a group that trades in a platform called “2139 exchange”. Me and my friends group joined this group because we did our research and we didn’t find anything haraam concerning it. But now I’m having some doubts. 

Basically a certain individual studies the market and predicts the direction of a certain currency and makes profits through the price fluctuations. The participants can join the trade through a futures feature and get a profit but he takes a percentage also when the participants withdraw their profits he also takes a percentage. So I want to know if it’s halaal or haraam because I heard some people saying it’s like gambling. 

A: This is not permissible. This is gambling, as one is not purchasing any item and selling it to make profit, but rather one is making money through speculation. Hence, this resembles betting which is one form of gambling. It is not permissible for a Muslim to get involved in this. If he earns money through this means, the money will be haraam and regarded as interest.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)