As cryptocurrency gains popularity among investors worldwide, including Muslims, a key question emerges: Is cryptocurrency halal according to Islamic principles? To address this, we must explore the perspectives of scholars, religious fatwas, and the nature of various crypto assets. This article provides a comprehensive look at the Sharia-compliant status of cryptocurrency.
Perspectives of Scholars and Islamic Institutions
The permissibility of cryptocurrency in Islam hinges on its purpose and usage. The Indonesian Ulema Council (MUI) has issued a fatwa stating that using crypto as a medium of exchange is haram due to gharar (uncertainty). However, the same fatwa allows for crypto to be halal when treated as a commodity or digital asset, provided it adheres to Sharia principles. These principles include clear value, tangible benefits, fairness, and transparency in transactions.
This opens the door for Muslim investors to participate in the crypto market, provided the assets and transactions align with Islamic values. Among the various trading methods, spot trading stands out as the most Sharia-compliant due to its direct, transparent nature and absence of prohibited elements like riba (usury), gharar, or maisir (excessive speculation).
Why Spot Trading is Halal
Spot trading involves the immediate exchange of crypto assets without delays, loans, or interest-based mechanisms. This directness ensures compliance with Islamic principles of buying and selling, which require clarity in the traded object, exchange value, and delivery time. By avoiding leverage and speculative practices, spot trading eliminates concerns about riba and gharar, making it a valid and halal method for crypto investment.
Examples of Halal Crypto Assets
Certain crypto assets are considered halal when they meet Sharia requirements. Here are three examples:
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Bitcoin (BTC)
While MUI deems Bitcoin haram as a currency due to its volatility and uncertainty, it can be halal when treated as a digital asset for investment. Some scholars liken Bitcoin to digital gold, permissible if traded transparently and fairly. -
XAUT (Tether Gold)
XAUT is a crypto token backed by physical gold, with each token representing one troy ounce of gold—a halal asset in Islam. As long as XAUT can be redeemed for physical gold and is not used for speculation, it is considered a Sharia-compliant investment. -
Islamic Coin (ISLM)
Designed specifically to align with Sharia principles, Islamic Coin operates under the oversight of a Sharia board. A portion of its profits supports social initiatives for the Muslim community, and it avoids prohibited activities while maintaining transparency, making it a strong example of a halal crypto asset.
Conclusion
Cryptocurrency is not inherently halal or haram; its status depends on the asset type, purpose, and transaction method. According to MUI and other scholars, spot trading and certain assets like Bitcoin, XAUT, and Islamic Coin can be halal if they adhere to Islamic principles, such as transparency, real value, and the absence of riba, gharar, or maisir. Muslim investors should thoroughly research crypto assets and ensure transactions comply with Sharia guidelines to build a responsible and halal investment portfolio.
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Sources:
- Apakah Bitcoin Haram? Perhatikan 3 Ketentuan Hukum MUI. Majelis Ulama Indonesia, 2025.
- Hukum Bitcoin dalam Islam, Halal atau Haram. Kumparan, 2025.
- Islamic Coin. Islamic Coin, 2025.
Disclaimer:
This article is for informational purposes only. Always conduct your own research before investing. All decisions related to buying, selling, or investing in crypto assets are the reader’s responsibility.