Answered by: Maulana Imran Mughal
Question-
Salam, sheikh, is there anything I need to be careful about cryptocurrency business?
Is there anything that makes cryptocurrency Haram?
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful.
Answer
According to the latest research paper on the issue of Bitcoin, Mufti Faraz Adam concludes that three conditions were laid for something to be considered money: Mal, Taqawwum, and Thamaniyyah. According to his paper, only two of the three were found in Bitcoin.
Towards the end of the paper he mentions that “nevertheless, any return on Bitcoin investments would be lawful and Shariah-compliant.”[1]
Contemporary scholars have differed regarding the permissibility of Bitcoin/cryptocurrency. The best and safest approach would be to refrain from it until further research is conducted in this matter.
Mufti Faraz Adam has a paper on this topic that can be found online, as well as other short articles written by ulama that have specialized in the field of Islamic Finance.
Only Allah Knows Best
Written by Maulana Imran Mughal
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham
[1] Mufti Faraz Adam, Bitcoin: Shariah Compliant?