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The short answer is yes—bitcoin, ethereum, and similar cryptocurrencies are halal.
Our extensive research into bitcoin and cryptocurrency by qualified scholars concluded that buying and selling bitcoin, ethereum, and similar well known currencies is halal without any issue. All four Sunni Schools of Islamic (madhab) thought agree that non-physical items are valid property to buy/sell.
Just a reminder these are zakatable assets after owning for one year. There is some gray area with lesser known cryptos, and there are often issues with other types of assets such as equity tokens or NFTs since the object of sale is less clear in those transactions.
Many cryptocurrencies are also halal, but depends on a variety of individual factors.
- By default, objects of sale in business are deemed halal until proof is given that shows something is haram.
- Our research sets out evidence why bitcoin and similar cryptocurrencies like ethereum are halal, and are valid property based on consensus of the four sunni madhab that virtual and non-physical items can also be property
- The seller and buyer who are party to a transaction can stipulate any goods to be exchanged. These can be anything halal. Only haram items like pork, alcohol, or dogs etc. are forbidden items of a transaction.
- Buying/selling bitcoin is generally permissible
- Providing services and receiving payment for bitcoin is also permissible.
This is our understanding of the matter based on our research. Allah knows best.