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The short answer is yes—bitcoin, ethereum, and similar cryptocurrencies are halal.
Our extensive research into bitcoin and cryptocurrency by qualified scholars concluded that buying and selling bitcoin, ethereum, and similar well known currencies is halal without any issue. All four Sunni Schools of Islamic (madhab) thought agree that non-physical items are valid property to buy/sell.
Just a reminder these are zakatable assets after owning for one year. There is some gray area with lesser known cryptos, and there are often issues with other types of assets such as equity tokens or NFTs since the object of sale is less clear in those transactions.
Many cryptocurrencies are also halal, but depends on a variety of individual factors.
- By default, objects of sale in business are deemed halal until proof is given that shows something is haram.
- Our research sets out evidence why bitcoin and similar cryptocurrencies like ethereum are halal, and are valid property based on consensus of the four sunni madhab that virtual and non-physical items can also be property
- The seller and buyer who are party to a transaction can stipulate any goods to be exchanged. These can be anything halal. Only haram items like pork, alcohol, or dogs etc. are forbidden items of a transaction.
- Buying/selling bitcoin is generally permissible
- Providing services and receiving payment for bitcoin is also permissible.
This is our understanding of the matter based on our research. Allah knows best.
FAQs
“In Shariah, there is no valid reason to accept bitcoin or other cryptocurrencies as a currency. It is just an imaginary number, which is generated through a complex mathematical process. It is purchased for gambling or speculations, and used in illegal or unlawful transactions”.
Is Bitcoin halal or haram quora? ›
Crypto in general is halah to buy, sell or keep as an asset, but for binance (or any other exchange) only spot trading is halal, so margin trading, futures, staking, defi staking, earn services, loans, dual investments, borrowing ALL are Haram, and binance in particular even for normal staking gives you the rewards + ...
Is Bitcoin era halal? ›
Bitcoin and Islamic Finance
Islamic finance principles prohibit interest (riba) and speculative investments (gharar). The recognition of Bitcoin as halal signifies that it aligns with these principles, potentially making it a suitable investment for Muslims who adhere to Sharia law.
Is crypto halal hanafi? ›
Here are key views on Cryptocurrency in Islam from Hanafi: Halal Perspective: Some scholars, including Mufti Muhammad Abu-Bakar and Mufti Faraz Adam, consider cryptocurrencies like Bitcoin permissible under Islamic Sharia rules due to their value, availability as a currency, and absence of interest (riba)[1][4].
Is Bitcoin future trading halal? ›
Crypto futures trading can be considered halal if certain conditions are met. They argue that futures contracts can serve as a hedging tool to manage risk and protect against price volatility.
Is bitcoin cash halal? ›
In this article we do a complete shariah screening of Bitcoin Cash to determine if BCH is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in BCH coin, but have a read and and see if you feel comfortable about it first.
Is it halal to invest in digital gold? ›
Trading gold is permissible (halal) in Islam, and it can be traded both online and offline. However, the transaction must meet two requirements: It should be on a cash basis. The price must be paid to the seller immediately.
Is creating crypto haram? ›
While some scholars argue that certain cryptocurrencies exhibit characteristics akin to gambling and are thus haram, others believe that investing responsibly without participating in illegal activities can be considered halal within specific parameters set by Islamic law.
Why is ethereum haram? ›
In terms of trading in ETH, whether it's considered haram or not depends on individual beliefs and interpretations. Some people may view certain forms of trading as haram due to factors like uncertainty, speculation, or involvement in prohibited activities.
How do I know if crypto is halal or haram? ›
Arguably, the cryptocurrency system can involve both Halal and Haram elements. You can assess any digital currency from both technological and Islamic perspectives to check their Shariah-compliance. Islamic law provides a set of certain conditions that must be met for an asset to be considered Halal.
Whether or not airdrops or bounties halal, depends on the rulings upon cryptocurrency. It's still a subject of disagreement among the modern scholars. There is also another tricky part, that is there are thousands of different cryptocurrencies these days. Each has its own specific purpose, community, behavior, etc.
Is Bitcoin halal Deoband? ›
Therefore, the businesses running in form of buying and selling of bitcoins or any digital currencies on the internet are not Halal (i.e. impermissible) in light of the Islamic Shari'ah and it is also impermissible to invest money in them.
Is Bitcoin halal in the USA? ›
Similarly, the Fiqh Council of North America has unanimously decided that bitcoin is permissible. Furthermore, the Sharia Advisory Council branch of Malaysia's security commission has advised that trading and investing in cryptocurrencies is permissible.
Why is Bitcoin halal? ›
Islamic banking laws are also anti-interest so the technology, pricing, and buying and selling of cryptocurrency money is deemed halal by many Islamic scholars who rely on the teachings of Prophet Muhammad PBUH when seeking guidance about permissibility (ultimately, only Allah knows best).
Is Bitcoin haram Islam Q&A? ›
Some deem it haram, akin to riba, while others compare it to asset leasing, which is permissible. Staking could be halal if the cryptocurrency aligns with Islamic finance guidelines, avoids prohibited activities, and adheres to ethical principles.
Which trading is halal in Islam? ›
Example of halal trading: Spot transactions with an immediate cash settlement and those with a clear and legitimate purpose, such as exchanging goods and services, are generally permissible.
Is Bitcoin staking halal? ›
Always make sure you understand the level of risk involved, the projects involved and the legitimacy of the network before staking your assets. A problem could arise if the blockchain itself is deemed halal but further down the line it starts to become involved in haram industries.
Is Binance halal in Islam? ›
Binance itself does not offer interest-earning accounts directly. Any interest earned is through third parties. So core trading activities are halal.
Is digital gold halal? ›
Trading gold is permissible (halal) in Islam, and it can be traded both online and offline. However, the transaction must meet two requirements: It should be on a cash basis. The price must be paid to the seller immediately.
