Is crypto halal?

Islamic Finance & Shariah
21

I think the outcome and the conclusion to this are followed.

  1. There is a clear ikhtilaaf (difference of opinion).
  2. We follow a trusted scholar and based on his evidence.
  3. For those that differ, we have our opinion and they have theirs and we must learn to tolerate and understand their opinion.
  4. the world is moving towards crypto, so scholars may have to one day make a new fatwa out of necessity if all transactions turn towards crypto.

I could be wrong in all this, please do correct me!

22

It could also be argued that the scholars who’ve deemed it impermissible are also considering the real world impact of bitcoin. I believe over 20 people have commit suicide over their bitcoin related investments going to the ground. Surely the prudent thought should be given more weight, both on a moral and a religious point.

23

Hence, point (4) regarding the need to update fatwahs due to necessity could be used in favour of condemning bitcoin as haraam (I’m sure the more knowledgable in the forum can give examples from the past of certain permissible things being deemed impermissible because of their abusive use by people in their age).

24

Also, it’s key to remember that we have a spectrum in terms of permissibility/impermissibility. Hence i assume there are many who consider bitcoin as halal but still consider it disliked or heavily disliked due to its repercussions and alternative opportunities.

25

While I get what you are saying, how is this different from business or investment in general? Some people make bad investment choices or simply aren’t cut out for the risk involved, the same goes for bitcoin.

26

That’s a valid point and one that I believe YQ alluded to in his video.
One may however remain committed to the view that the overall volatility much higher than other financial instruments (and it remains unregulated to a large degree).

I guess the debate remains quite open ended.

27

Assalamualaikum. Great question and great participation from everyone.

Seems you all missed my participation in this space :slight_smile:

I shared thoughts about this topic in February 2018 here:

I was then interviewed on this topic by the Islamic Council in a program that spanned almost 3 hours in 2021. In attendance were financial market players, including the head of the Shariah board of the Islamic Markets, and several academics across the Western sphere. My thoughts were well received by all as per the feedback shared thereafter.

The entire program was transcribed for ease of access by the masses and can be found in the following link below:

The following topics were covered in the interview:

How would the Shariah have prevented the 2008 financial crisis?
Are cryptocurrencies going to solve our current financial ills?
What is the history of money?
What about the idea of Money from an Islamic Perspective?
What are the characteristics of money in Islam?
Is there a difference between money and currency?
What about blockchain?
What are the Islamic rulings on bitcoin and altcoins?
Why does Sh. Sajid view Bitcoin as a distorted currency?
What is Sh. Sajid’s view on buying cryptocurrencies?
What does Sh. Sajid think about the public reaction to differing views?
Islamic arguments against cryptocurrencies
Tokens from an Islamic perspective
ICOs and ITOs from an Islamic perspective
NFTs (Non-Fungible Tokens) from an Islamic perspective
Which opinion should we adopt if there are many?

If there are any technicalities from my view that are not understood, please do get in touch.

May Allah bless you all.