Is crypto halal or haram?

Whether crypto is halal or haram is an open question in Islamic finance, and the answer depends on which scholars or religious bodies a person follows. Some have declared it forbidden, while others allow it under conditions. This guide sets out the main positions without taking a side.

Why do some scholars say crypto is haram?

Concerns tend to center on three ideas from Islamic commercial law: gharar (excessive uncertainty), maysir or qimar (gambling), and harm.

In January 2018, Ahram Online reported that Egypt's Grand Mufti, Shawki Allam, issued a fatwa saying bitcoin trading is not permitted. The reasons included its link to financial ruin, a comparison with gambling, and its position outside state financial supervision, which he said could ease money laundering.

An academic article in the Al-Ihkam journal also cites Sheikh Ali al-Qaradaghi as prohibiting crypto transactions on the grounds that it lacks the nature of money.

Is bitcoin halal according to Indonesia's Ulema Council?

In November 2021, the Indonesian Ulema Council (MUI) ruled that using crypto as currency is haram, Al Jazeera reported, citing uncertainty, wagering and harm. The Jakarta Post described the decision as a ban on trading.

The detail matters here. According to the Al-Ihkam article, the fatwa said crypto as a digital commodity is not lawful to trade because it fails the requirements for a tradable good. It added that a crypto asset meeting those requirements, with an underlying asset and clear benefit, may be traded. Fatwas from the MUI are not legally binding in Indonesia, where crypto can still be traded as a commodity. See is cryptocurrency legal for how laws differ by country.

Is crypto trading halal in Malaysia?

Malaysia's securities regulator has a Shariah Advisory Council. In July 2020, The Edge Malaysia reported that the council resolved that investing in and trading digital assets is permissible in principle on registered digital asset exchanges.

A 2024 commentary in Twentytwo13 explains the reasoning. Digital currencies backed by gold or silver fall under rules for currency exchange, while digital tokens are treated as tradable items that are allowed if their use serves Shariah-compliant purposes. The Al-Ihkam article also cites Dr Mohd Daud Bakar, who chaired Bank Negara Malaysia's Shariah council, as arguing that blockchain-based currency can fit the higher aims of Shariah.

Is staking halal?

The rulings above focus on crypto as money and as a tradable asset, and they do not directly address staking, lending or yield products. Some scholars, the Al-Ihkam article notes, favor judging each crypto asset by its project, utility and governance rather than issuing one blanket ruling. For background on how coins differ, see what gives cryptocurrency value.

Religious views differ by scholar and country and continue to develop. Consult a qualified scholar or Shariah adviser you trust for your own situation.