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Is trading in bitcoins and other crypto-currencies halal ?

QUESTION

Is trading in bitcoins and other crypto-currencies halal ?

ANSWER

الجواب حامداً و مصلياً


A digital crypto-currency is a means of trading value such as in the case of bitcoins. This decentralized form of digital currency is artificially created by individuals involving a complex 'mining' procedure and involves the recording of bitcoin transactions via a online self-regulating system (The Economist).

In terms of the Islamic ruling regarding such crypto-currencies, there is presently no consensus among Islamic scholars. Some scholars have allowed bitcoin trade whilst others have forbidden it. Those who disallow it do not regard it as either an asset or traditional currency according to Islamic principles, whereas those who allow it, hold that it is a new form of currency which may take the ruling of traditional currency. In light of the above, it is advisable to avoid such crypto-currencies out of precaution based on the hadith which instructs one to preserve ones honour and faith by avoiding doubtful matters (al-Bukhari and Muslim). And Allah knows best.

Islamic Reference:

وعن أبي عبد الله النعمان بن البشير رضي الله عنه قال سمعت رسول الله صلى الله

عليه وسلم: يقول: إن الحلال بَيِّن وإن الحرام بَيِّن، وبينهما أمور مشتبهات، لا يعلمهن كثير من الناس،

فمن اتقى الشبهات فقد استبرأ لدينه وعرضه، ومن وقع في الشبهات وقع في الحرام... رواه البخاري ومسلم

Answered by FCB Fatwa Department