Is CoinJar.com Legit (But Still Ethically Questionable)?

Based on checking the website, CoinJar.com presents itself as a legitimate operational entity within the cryptocurrency industry.

Read more about coinjar.com:
CoinJar.com Review & First Look
CoinJar.com Cons: A Deep Dive into the Ethical Quagmire

It touts a history dating back to 2013, mentions being “backed by some of the world’s top investors,” and highlights its regulatory compliance with AUSTRAC in Australia and the Financial Conduct Authority (FCA) in the UK for Anti-Money Laundering (AML) purposes.

The presence of a clear fee structure, multiple deposit options, dedicated customer support channels (including a knowledge base and email), and a stated Trustpilot score of 4.2 further reinforce its operational legitimacy.

However, “legitimacy” in the sense of being a legally registered and functioning business does not equate to “ethical acceptability” from an Islamic perspective.

The core business of facilitating cryptocurrency trading still carries significant ethical red flags.

Regulatory Footprint and Compliance Claims

CoinJar explicitly states it is a “registered digital currency exchange provider with AUSTRAC” and is “compliant with the Financial Conduct Authority UK (for AML purposes).” This indicates that CoinJar operates within established regulatory frameworks in its primary jurisdictions.

For instance, AUSTRAC, Australia’s financial intelligence agency, has strict reporting obligations for digital currency exchanges to combat money laundering and terrorism financing.

The FCA in the UK also imposes stringent AML requirements.

While these regulatory efforts aim to ensure legal compliance and deter illicit activities, they do not inherently validate the ethical permissibility of cryptocurrency trading itself.

They simply mean that CoinJar adheres to governmental oversight for financial transactions, not that the assets traded or the mode of trading are ethically sound. Roquebrun-tan.com Review & First Look

Operational History and Backing

The claim of operating “since 2013” makes CoinJar one of the “longest-running exchanges on the planet.” This longevity, in a relatively nascent and often turbulent industry, suggests a degree of stability and resilience.

Furthermore, the mention of being “backed by some of the world’s top investors” usually implies a level of professional scrutiny and financial endorsement.

These factors contribute to the platform’s commercial legitimacy and its ability to withstand market fluctuations.

However, even well-established and well-funded entities can engage in activities that are ethically problematic.

For example, many large conventional banks are legitimate businesses but operate on interest-based models which are forbidden. CoinJar.com Cons: A Deep Dive into the Ethical Quagmire

Security Measures and Asset Custody

CoinJar emphasizes “Industry-leading security,” stating that “more than 90% of our customers’ assets are stored offline in secure locations or in private key-enabled, multi-sig wallets.” It also highlights that its assets are “secured by BitGo and Fireblocks, two of the most respected custody providers in the cryptocurrency space.” The platform claims to “maintain full currency reserves at all times, with sufficient assets to cover more than 100% of our customer balances.” These are crucial claims for any financial platform, especially in the crypto space, where hacks and insolvency have been significant issues.

While these security measures are commendable for protecting user assets from theft, they do not mitigate the inherent ethical issues of speculating on digital currencies themselves.

Protecting speculative assets does not make the speculation ethically permissible.

Customer Support and Reputation

CoinJar mentions “5-star support,” an “expansive Knowledge Base,” a “highly trained Support team, available 7 days a week,” and email support. The website also refers to its “TrustScore 4.2 | Trustpilot,” suggesting a generally positive public perception of its service quality. Good customer service and a decent reputation for responsiveness and problem-solving are indicators of a well-managed business. However, even a platform with excellent service can be facilitating activities that are ethically questionable. For example, a well-run casino might have great customer service, but gambling itself remains forbidden.

The Problematic Aspect of Legitimacy

Ultimately, CoinJar.com appears to be a legitimate business operation in the cryptocurrency sector, adhering to the legal and operational standards set by its regulators. However, for those seeking to engage in financial activities that align with ethical principles, CoinJar’s legitimacy as a crypto exchange is precisely its drawback. Its core function is to enable the trading of cryptocurrencies, which are often characterized by excessive uncertainty (gharar), volatility, and speculative elements that can resemble gambling. Therefore, while it may be legitimate in a legal sense, it remains ethically problematic. Thinkolives.com Review