Although the Holy Qur’an was revealed hundreds of years before the invention of Cryptocurrencies, we can still search within the Qur’an to understand whether the concept of cryptocurrency and the procedures for buying, selling and trading it are Halal or Haram in Islam. We as traders are looking to profit and make money, but we want to make sure that we do so in accordance with the teachings of Islamic law.
Cryptocurrencies have been treated since their inception as forex, so there are definitely ways to buy, sell and trade cryptocurrencies the Halal way. We have done extensive research and can now answer all questions related to cryptocurrency in Islam.
As the world today is going digital, the options for digital investments and online trading are changing and evolving rapidly as well. The biggest debate now among Muslim traders is whether Cryptocurrency is Halal or Haram? Since 25% of the world’s population is Muslim, it is important to know this fact. If you are planning to buy, sell and trade cryptocurrencies, don’t worry, we’ve done this research for you.
If cryptocurrency is utilized as a digital form of money that will fulfill the function of transaction allowed in Islam just like cash, and if the cryptocurrency you own is used to fulfill your requirement of such transaction, then it is Halal in Islam and allowed according to Islamic Sharia laws. Because according to the laws of Islamic law, anything similar to cash money recognized by the majority of scholars is Halal in Islam.
It is important for Muslim traders to buy, sell and trade cryptocurrencies from a Halal broker. At Halal Trading Brokers, we help you connect with Halal cryptocurrency brokers who apply the teachings of Islamic Sharia in all their trading transactions, whether in forex, stocks, commodities, cryptocurrencies, and more.
So, going back to the question (Is cryptocurrency Halal or Haram?), the answer depends entirely on how it is used – according to Islam. In short, Cryptocurrency is Halal and compliant with Islamic law but you have to keep in mind the purpose of its use.
For example, if you profit from cryptocurrency just like regular cash, you are following a Halal way of trading. On the other hand, if you use these Cryptocurrencies to earn interest or Riba, then this trading is considered Haram in Islam.
Riba is unjustified gain or interest in borrowing or lending money as a condition imposed by the lender or imposed by the borrower himself. Riba is strictly Haram in Islam.
If you do not spend your cryptocurrency on gambling, alcohol, or any other illegal activity that violates Sharia laws, then this is Halal trading. Let’s delve into the concept of Halal Cryptocurrency and Haram Cryptocurrency to better understand it. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon.
Is Crypto Halal or Haram?
All cryptocurrencies are Halal as long as you own them with the intention of using them as a medium of transactions and to meet your daily purchasing needs. It is recommended and allowed according to Islamic Sharia laws to use Cryptocurrencies and crypto networks as the standard payment system because it provides you with more benefits than fiat currencies.
Many Muslims in countries like Germany and Australia get paid in Cryptocurrency, and this is completely in line with Islamic law. Since they will be spending cryptocurrencies as an alternative to cash, it does not fall under any kind of Riba. As long as you are not holding cryptocurrency for unjustified profits, dealing with cryptocurrency is permitted in Islam.
According to Islamic financial experts, it is proposed to use these cryptocurrency networks as an ecological payment system where the user will get more advantages than traditional systems. Since the traditional fiat currency trading system is already violating Islamic laws through the (Riba) system, it is safe to use Cryptocurrencies as a method of financial transactions because it is halal.
Whereas, Cryptocurrency is Haram when its use differs from the context mentioned above. If anyone is taking advantage of Cryptocurrencies as an investment platform to gain unjustified interest, then this is considered Haram in Islam. It violates the provisions of Sharia, which clearly states that taking Riba is a sinful act.
Cryptocurrencies are considered Haram if you use them for illegal activities such as gambling and other similar practices. Or if someone is using Cryptocurrency to buy Haram products like alcohol or anything that violates the laws of Islamic law then it is Haram and a Muslim should not practice it.
Is Crypto Trading Halal or Haram?
Cryptocurrency is Halal if you adhere to the laws of Islamic law in spending and using it in your daily life. Halal Cryptocurrency is similar to gold and silver because it meets the basic requirements of ordinary life. Islam considers gold (dinar) and silver (dirham) to be the purest form of currency circulation.
Since fiat currency is unlimited and the government can print as much of it as possible, it does not quite fit the laws of Islamic law. On the other hand, Cryptocurrencies like bitcoin are limited and only 21 million bitcoins will be produced, thus they comply with Islamic laws as long as they are used legitimately.
Many people confuse cryptocurrency and gambling but they are very different from each other. Bitcoin and other digital alternative currencies are only a replacement for fiat currency and are not gambling unless interest (Riba) is obtained through it. When you own cryptocurrency and buy from an approved Halal broker, you are complying with the laws of Islamic law. It is never allowed to buy cryptocurrency from an unverified broker.
On the other hand, Cryptocurrency is Haram if someone does not own it. There is a lot of difference between owning cryptocurrencies and trading them. Many unverified brokers deceive users by investing their money in such market-traded Cryptocurrencies to earn unjustified interest (Riba).
Cryptocurrency is considered Haram if someone’s name is used to invest or trade in it. You should be careful what you do with your cryptocurrency. If you are using it to gamble or invest in the stock market to reap unexplained profits, it is a sin and has been defined by Islamic Sharia as forbidden.
Cryptocurrencies should not be treated as a platform to earn undue benefits. Do not fall into the trap of online brokers who are scamming you by offering a welcome bonus for registering on their platform. At Halal Trading Brokers, we review online cryptocurrency platforms and Halal trading brokers around the world to ensure that Muslim traders only deal with Halal brokers.
If you have any queries or questions regarding Halal cryptocurrency or Halal trading brokers, Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon.
Find Halal Cryptocurrency Brokers
At Halal Trading Brokers, our team reviews all online cryptocurrency brokers. We are a group of Sharia-compliant traders because Halal trading is extremely important to us. If you are new to cryptocurrency and thinking of owning it for your use or for halal trading, we are here to help you.
With so many options for trading cryptocurrencies online. It becomes important to check with the broker before buying cryptocurrencies through them. Don’t worry, we have thoroughly researched the best Halal trading platforms for you. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon, they will offer you Halal trading on all the financial assets you wish to trade, whether in currencies, stocks, commodities, indices, cryptocurrencies, and others.
We’ve done our in-depth research on finding the best Halal cryptocurrency brokers around the world, and we’d be happy to connect you with them. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon.
Finally… Are Cryptocurrencies Halal or Haram?
The answer as mentioned entirely depends on how you use it. If you are not storing it or making use of it for any illegal activities like gambling, then cryptocurrency is Halal. It is safe to buy cryptocurrencies only from approved Halal brokers. Leave your contact details below and Halal trusted broker ToTradeGlobal.com will contact you soon.