QA-ID-0029
QUESTION
What is the ruling on cryptocurrency/Bitcoin?
ANSWER
﷽
Investing in cryptocurrencies, such as Bitcoin, is not permissible. This ruling is unanimously supported by our scholars across India.
Cryptocurrencies lack tangible existence and are therefore not considered goods (māl) as per the sharī’ah. Since they do not fall under the category of goods, they cannot be considered a currency either. As such, buying and selling cryptocurrencies is impermissible (Shar’ī Council of India, presided over by Tāj al-Sharī’ah Muftī Akhtar Ridā, 15th Seminar, 2018).
Brief explanation:
Cryptocurrencies, devoid of any tangible existence, are exclusively traded for speculative purposes at present, lacking actual utility. In contrast, while modern money may mostly exist in digital form, it can still be tangible and serves practical purposes, unlike cryptocurrencies, which primarily function as speculative instruments.
If one argues that other intangible things are permissible (software, digital files etc.) despite lacking tangible existence, it is crucial to emphasise that their permissibility is grounded in widespread usage and actual utility. Additionally, unlike cryptocurrencies, which are characterised by speculation and uncertainty at the moment, these permissible intangible things serve practical purposes and are not primarily speculative instruments.
Therefore, as it stands now, cryptocurrencies are not deemed valid goods for investment. It is advisable for Muslims to abstain from investing in them and safeguard their wealth.
Remember, Allāh is the ultimate provider of provisions. Whatever wealth is destined for you will come to you, so refrain from seeking provisions through improper means.
Further details can be found in our upcoming paper on cryptocurrencies.
والله تعالى أعلم
And Allāh Knows Best
Muhammad Kalim Misbahi
