Is Bitcoin halal or haram?
Trading futures in cryptocurrency is generally considered haram in Islamic finance. This is due to its speculative nature, likened to gambling, and the involvement of uncertainty and risk, which contradict Islamic principles emphasizing risk-sharing and avoiding speculation.
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.
What is Islamic Coin in Crypto? Islamic Coin, or ISLM, is a cryptocurrency designed to adhere to Shariah principles, making it permissible (halal) in Islam.
Name | Ticker | Halal/ Haram Status |
---|---|---|
Bifrost | BFC | Bifrost: BFC is Halal |
Binance Coin | BNB | Binance Coin: BNB is Halal |
Binance USD | BUSD | Binance USD: BUSD is Halal |
Bitcoin | BTC | Bitcoin: BTC is Halal |
The most popular cryptocurrency such as Bitcoin, Ethereum, and Dogecoin are all halal, however, Shiba Inu(SHIB) token Alpha and PancakeSwap (CAKE) could be considered Haram.
“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”.
Cryptocurrency is seen as an investment commodity rather than a currency, with a high level of risk and volatility that reflects mafsadah (harm). It is not considered a means of payment in transactions and is not accepted as money in the Islamic financial system.
Individuals are usually interested in cryptocurrencies to earn profit. They can buy, hold, sell, or make short-term trades (e.g., minutes, hours, or days). Sharia does not consider crypto Haram unless it deals with impermissible activities related to Riba, Maysir, and Gharar.
Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram.
On the other hand, forex trading is deemed halal in Islam when transactions are conducted on a spot basis with immediate settlement, avoiding interest, ensuring actual ownership, and utilizing swap-free accounts to comply with Islamic finance principles.
Is Bitcoin 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].
The short answer: No. Bitcoin is a particularly risky investment with more volatility than traditional investments of stocks, bonds and funds.
Margin trading, day trading, options, and futures are considered prohibited by sharia by the "majority of Islamic scholars" (according to Faleel Jamaldeen).
Some scholars argue that dropshipping can be considered halal as long as the seller adheres to the principles of honesty, transparency, and fairness. Others express concerns about the potential for deceptive practices and lack of ownership, which could render it haram.
Creation of Money from Nothing: Shaykh Haitham al-Haddad argues against cryptocurrency mining as it involves creating money from nothing, which he deems impermissible under Shariah law.
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 + ...
Since Bitcoin is a currency and doesn't bear interest, holding Bitcoin doesn't violate Islamic Law to the best of my knowledge.
The Fatwa committees in the UAE and Saudi Arabia have ruled that cryptocurrency trading is generally halal, as long as the coins are free from interests and impure activities like gambling.
Zakat is to be applied against the full value of any capital held, including cryptocurrency, if purchased with the intention of making financial gains. As prescribed in Islam, 2.5 percent of all income must be utilised in this manner.
That is called physical forex trading and is allowed in Islam. However, it is different from online forex trading. In online trading, the trader owns and does not withdraw the money. This is not allowed because it contains gharar (uncertainty) since we do not hold real money just like in physical forex trading.
Is crypto considered gambling?
Cryptocurrency trading is a risky activity and associated with a higher rate of excessive gambling over time. Such activity is especially risky among offshore online gamblers, who could view cryptocurrency trading as another form of gambling or as a way to make money for gambling.
One example of halal investment is Islamic business financing, which works using new models of profit-sharing, sharia-compliant insurance and sukuk, an Islamic financial certificate that represents a share of ownership.
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 + ...
Day trading may involve interest-based transactions, such as margin trading, which may be considered haram in Islam. However, some Islamic scholars say that day trading is halal as long as it is conducted ethically and does not involve interest-based transactions.
Because gambling, in general, is not ethical according to Sharia laws, these laws forbid gambling with Bitcoin as well. Not only gambling but also lending and some other types of trading with bitcoin are almost certainly prohibited.