Hanafi Opinions on Cryptocurrency Halal Status:
The Hanafi school of thought, like other Islamic jurisprudences, has varying opinions on the permissibility of cryptocurrency. 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].
- Haram Perspective: On the contrary, scholars such as Shaykh Shawki Allam express concerns about the speculative nature, uncertainty, and potential for fraudulence associated with cryptocurrencies, leading to debates over their permissibility under Islamic principles[3].
- Regulation and Compliance: The lack of clear rulings from national Sharia authorities and global bodies on the permissibility of cryptocurrencies adds complexity to the issue, with varying opinions among scholars worldwide[2].
- Islamic Finance Guidelines: Efforts are being made to establish Shariah-compliant cryptocurrency guidelines to assist Muslims in assessing the permissibility of cryptocurrencies based on Islamic finance rules[1].
In conclusion, the Hanafi opinions on cryptocurrency’s halal status reflect the broader debate within Islamic scholarship. While some scholars argue for the halal status of cryptocurrencies based on their value and compliance with Islamic finance principles, others raise concerns about speculation, uncertainty, lack of regulation, and potential for misuse. As discussions continue and disagreements persist, Muslims are advised to seek knowledge, consult with Shariah advisors, and evaluate individual cryptocurrencies against Islamic finance principles to make informed decisions regarding their permissibility under Hanafi jurisprudence.
Source: [1] https://www.sarwa.co/blog/is-cryptocurrency-halal [2] https://academy.musaffa.com/is-cryptocurrency-haram/ [3] https://www.islamicfinanceguru.com/articles/scholars-who-say-cryptocurrency-is-haram-and-those-who-say-its-halal [4] https://bloommoney.co/learning-hub/is-bitcoin-halal-a-guide-to-cryptocurrency-for-muslims
FAQs
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 cryptocurrency halal hanafi? ›
In terms of Islamic law, cryptocurrencies also present issues with legitimacy for users who are Muslims (Fiqh). Despite the claims of many religious organisations and Islamic academics, some Islamic scholars believe that bitcoins are halal, while others believe as haram.
Is crypto currency halal in Islamqa? ›
Is cryptocurrency halal? For many Islamic scholars, the answer quite simply is yes. Shariah principles can be applied to modern crypto analysis and digital currencies as they are based on social justice, accountability and ethics which transcend all forms of financial transactions.
Is stock trading halal hanafi? ›
It is permissible for Muslims to invest in stock markets if the company's Shares are in accordance with Shariah principles. Trading in shares on the stock market is absolutely fine from an Islamic view point.
Is cryptocurrency halal in salafi? ›
Sheikh al-Manea stated that he does not see any reason to prohibit or discourage Muslims from using Bitcoin, as long as they do so with good intentions and follow the ethical principles of Islam. He said that he believes that Bitcoin is a blessing from Allah, who has created everything for the benefit of mankind.
Is Bitcoin halal in Sunni? ›
What do Islamic scholars say about crypto? Many Islamic scholars seem to agree that, as it stands, cryptocurrency is haram, and should be avoided by Muslims. Indonesia, the world's largest Muslim-majority country, has banned cryptocurrency trading.
Is forex trading halal hanafi? ›
In essence, forex trading is considered halal within certain guidelines, including: No Interest-Based Transactions: Forex trading must avoid any involvement in interest-based transactions. This includes refraining from charging or paying interest on positions held overnight.
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.
Can Muslims own crypto? ›
Mufti Faraz Adam from Amanah Advisors views many crypto assets as utility providers within their ecosystems, giving owners rights such as asset ownership, licenses, or platform access. This lawful utility qualifies them as 'Māl' (wealth) from a Shariah perspective, making them permissible.
Which crypto coin is halal? ›
Bitcoin (BTC): The pioneer cryptocurrency, widely accepted and considered halal by many scholars.
So, based on the data mentioned above, we can say that Coca-Cola stock is an excellent option for Muslim investors because it passes all the criteria to be found halal and not haram. However, some other platforms run extra screening analysis to check the stock's compliance status.
Who are the shares according to Hanafi law? ›
In the Hanafi scheme of inheritance, the following five heirs are always entitled, to a share in the estate; namely, husband~ wife, child, father and mother. These heirs are called primary heirs.
Is Dow Jones halal or haram? ›
Many Muslim investors do not know whether or not the stocks listed on the Dow Jones are Halal. The answer is yes; 14 listed companies in the Dow are categorized as Halal, according to Musaffa. Almost half of the listed stocks in Dow Jones comply with Shariah criteria.
What does Mufti Taqi Usmani say about cryptocurrency? ›
Mufti Taqi Usmani, a former judge of the supreme court of Pakistan, is representative of this side of the debate. “Currencies are originally a medium of exchange, and making them a tradable commodity for profit earning is against the philosophy of Islamic economics,” Mufti Usmani said.
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.
Are airdrops halal? ›
Are cryptocurrency airdrops and bounties halal in Islam? Cryptocurrency and bounties are not halal. They are actually haram.
Can Muslims use crypto? ›
“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 crypto halal darul ifta? ›
In the like manner, to trade using Bitcoin or any other digital currency, just as Forex Trading, it is prohibited; thus, one should abstain from this trade.” (Bitcoin ki Haqiqat aur uska Shari Hukm with reference to the fatwa of Darul Uloom Deoband: p. 38 [Ethical Business Consultants]).
