Short answer
Institutions are divided. The International Islamic Fiqh Academy has not reached a decision and warns of the risks (resolution 237, 2019); Diyanet (2017) considers highly uncertain cryptocurrencies unlawful, and Dar al-Ifta of Egypt (2018) trading in bitcoin; the Indonesian Ulema Council (2021) forbids them as money but accepts trading tokens that have a real underlying asset. Some scholars and Shariah boards, a minority, accept bitcoin as an asset.
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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International Islamic Fiqh Academy Organisation of Islamic Cooperation, JeddahNo decision
Decisive questions are still under study: is a cryptocurrency an asset, a usufruct, a financial asset or a digital asset? Does it have a value recognised by the Shariah? Given its major risks and its instability, the Academy recommends continuing the study.
Resolution 237 (8/24), Dubai, November 2019
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Diyanet Presidency of Religious Affairs, Türkiye (High Council of Religious Affairs)Prohibited
Cryptocurrencies that carry serious uncertainty, are highly exposed to deception, have no guarantee and enrich some people without due cause, in the manner of a pyramid scheme, are not permitted; each cryptocurrency is assessed according to these principles. The High Council re-examined the question at a meeting of experts in 2022.
Fatwa of 04/12/2017
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Dar al-Ifta of Egypt House of Fatwa, CairoProhibited
Trading in bitcoin is forbidden: it is a currency with no guarantee from an authority, highly volatile, which facilitates fraud and threatens the economy.
Fatwa of January 2018
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MUI Indonesian Ulema Council, JakartaUnder conditions
Using a cryptocurrency as money is forbidden (gharar, harm, contrary to the law); a crypto that has the nature of a commodity, with an underlying asset and a clear use, may be traded.
Meeting of Indonesian ulema (Ijtima Ulama), 11 November 2021
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Depending on your country
- Türkiye
- Crypto-asset platforms have been regulated by the Capital Markets Board (SPK) since 2024; Diyanet holds to its 2017 opinion.
- Morocco
- The use of cryptocurrencies was long prohibited by the foreign exchange authority; a legal framework is being prepared.
- Gulf states
- The Emirates and Bahrain have licensing regimes for platforms; some of them claim to have lists of “compliant” cryptos.
Why it is debated
To assess a cryptocurrency, scholars first ask what it is: a currency, an asset, a financial asset, a mere record? In 2019 the International Islamic Fiqh Academy recognised that these questions remained open, and that cryptocurrencies carry major risks and high instability; it recommended continuing the study (resolution 237 (8/24)).
The arguments against: uncertainty about the value and the issuer (gharar), speculation that resembles gambling, the absence of any guarantee, use for fraud, and prohibition in some countries. Diyanet concluded that cryptocurrencies with these characteristics are not permitted (2017), and Dar al-Ifta of Egypt prohibited trading in bitcoin (2018).
The arguments for: a widely accepted cryptocurrency can be a medium of exchange recognised by custom, like any currency; some scholars and Shariah boards, a minority, have accepted bitcoin on this basis, while forbidding leveraged speculation.
What everyone excludes
- Leveraged trading, futures and options on cryptos: see options and derivatives.
- “Earn” or lending products that pay a guaranteed return on lent cryptos: this is an interest-bearing loan. See staking.
- Tokens for gambling, or for unlawful or fraudulent projects.
If you follow the permissive view
Buy outright, without leverage, cryptos whose use is lawful, on a regulated platform; avoid stablecoins backed by interest-bearing bonds when they are used as an investment; and remember that zakat on them is calculated separately.
The verses
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍ مِّنكُمْ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًا ٢٩
O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allāh is to you ever Merciful.
The hadiths
Abu Huraira (Allah be pleased with him) reported that Allah's Messenger (ﷺ) forbade a transaction determined by throwing stones, and the type which involves some uncertainty.
عَنْ بَيْعِ الْحَصَاةِ وَعَنْ بَيْعِ الْغَرَرِ .
Frequently asked questions
Is the USDT stablecoin halal?
It depends on its issuer’s reserves, which are often invested in interest-bearing securities, and on the views on cryptocurrencies in general. Holding it to make payments raises fewer questions than lending it for a return, which is an interest-bearing loan.
Are NFTs halal?
Diyanet examined NFTs and smart contracts at its 2022 meeting; an NFT is judged according to what it represents (a lawful work or not) and according to the speculative use made of it.