The question of whether cryptocurrency is halal (permissible) or haram (forbidden) under Islamic law is a topic of ongoing debate among scholars and experts. Here are the main points from the sources:

Reasons Why Crypto Might Be Considered Haram:

  1. High-Risk Investment: Cryptocurrencies are known for their volatility, which can lead to significant financial losses, similar to gambling, which is banned in Islam.
  2. Lack of Regulation: Cryptocurrencies are not regulated by governments or financial bodies, which raises concerns about their legitimacy and potential for illegal activities.
  3. Non-Tangible Nature: Cryptocurrencies are not physical assets, which contradicts the Islamic principle of having a physical commodity or asset underlying financial transactions.
  4. Potential for Illegal Activities: Cryptocurrencies can facilitate money laundering, drug money, and other illegal transactions due to their anonymity.
  5. Speculative Nature: Cryptocurrencies are often used for speculation, which is seen as akin to gambling.

Reasons Why Crypto Might Be Considered Halal:

  1. Potential for High Returns: Cryptocurrencies offer the possibility of high returns on investments.
  2. Accessibility: Cryptocurrencies can be accessed globally, 24/7, and offer secure transactions due to blockchain technology.
  3. No Interest (Riba): Cryptocurrencies do not generate interest, which is forbidden in Islam.
  4. Digital Asset: Some scholars view cryptocurrencies as digital assets, which can be used as a medium of exchange under specific conditions.

Scholarly Opinions:

  • Mufti Taqi Usmani: Trading in cryptocurrency is haram due to its speculative nature and lack of approval by legitimate bodies.
  • Mufti Shawki Allam: Trading in cryptocurrency is haram because it is not approved by legitimate bodies and can facilitate illegal activities.
  • Directorate of Religious Affairs, Turkey: Cryptocurrency trading is not appropriate due to speculation, illegal activities, and lack of state auditing.
  • Mufti Faraz Adam: Many crypto assets are permissible as they provide lawful utility within their ecosystems.

In summary, while some scholars consider cryptocurrency haram due to its speculative nature, lack of regulation, and potential for illegal activities, others see it as halal if used responsibly and without participating in illegal activities. The debate continues, and individual Muslims should seek guidance from knowledgeable scholars to make informed decisions about crypto investments.