Cryptocurrency

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database.

194419

Scholars . Cryptocurrency

What do prominent scholars, such as Ayatollah Sistani, Ayatollah Naser Makarem Shirazi, and Ayatollah Khamenei, say about trading and investing in Bitcoin?

Sayyed Mohammad Al-Musawi, Sayyed Mohammad al-Musawi is originally from Iraq and heads up the World Ahlul Bayt Islamic League in London. Other than being involved in various humanitarian projects, he frequently responds to... Answered 3 months ago

These are few names of prominent scholars who gave verdicts regarding trading in cryptocurrencies : Ayatullah Shaikh Eshaq Al-Fayyqdh, Late Ayatullah Sayyed Mohammad Sa’eed Al-Hakeem, Ayatullah Sayyed Moosa Shubayri Zanjani (If it does not harm others nor contradict with the rules of the country).

Wassalam.

193059

Cryptocurrency . Shi'a . Marja' . Options trading

Could you provide the names of Shi'a Maraje' who allow trading in cryptocurrency derivatives or futures?

List of Shia great scholars who allow cryptocurrency dealings include Ayatullah Sayyed Musa Shubayri Zanjani in Qum, and Ayatullah Shaikh Baqir Ayrawani in Najaf Ashraf and Ayatullah Shaikh Hasan Jawahiri in Najaf Ashraf. Late Ayatullah Sayyed Sa'eed Al-Hakeem in Najaf Ashraf allowed also dealing with crypto currencies.

Wassalam.

191088

Marja' . Cryptocurrency . Sayyid Ali Hussaini Sistani

Can you provide the names of any Marjas who permit futures trading? I am currently following Ayatollah Sistani, but I believe he has not addressed cryptocurrency or futures trading in his guidance.

Ayatullah Sayed Musa Zinjani of Qum allows dealing with cryptocurrencies provided it does not break the law of the land and does not harm anyone.

Ayatullah Shaikh Bakir Airawani of Najaf and Ayatullah Shaikh Hasan Jawahiri of Najaf say that dealing with cryptocurrencies is permissible.

Wassalam.

113467

Investment . Cryptocurrency . Gambling

Is it permissible to invest in cryptocurrencies? How can one distinguish between gambling on a trade and making a legitimate investment?

According to leading scholars like Marje’ Taqleed Sayyed Musa Zanjani in Qum, dealing with crypto is allowed provided it does not break the rules and does harm anyone. Gambling is completely different from trading. Trading has factors of the market while gambling has no factor but merely the chance, that is gambling is not allowed while trading is allowed.

Wassalam.

188570

Cryptocurrency . Futures trading

Is trading crypto futures allowed? In spot trading, we own the actual asset, which stays in our account even if it loses all value. In futures trading, particularly with leverage, we only have a digital representation of the asset.

According to leading scholars like Marje’ Taqleed Sayyed Musa Zanjani in Qum, dealing with crypto is allowed provided it does not break the rules and does harm anyone.

Wassalam.

188840

Gambling . Cryptocurrency . Short Selling

Is short trading on Binance permissible? For instance, if I short Bitcoin and its price declines, I profit, but if it rises, I incur a loss. Does this practice resemble gambling since profit comes from the coin's price decrease?

Some of our Maraje’ did not give opinion in crypto currency dealings, but other Maraaje’ allow that as far as it does break the government regulations and it does not harm anyone.

Price of everything can go up or down, so it is not a gambling.

Wassalam.

188113

Cryptocurrency . Futures trading

Is future trading in cryptocurrency permissible considering it entails future contracts, leverage, and funding fees?

Yes it is permissible according to the Maraaje; who allow cryptocurrencies dealings provided that it does not break the law of land and it does not harm others.

Wassalam.

187540

Cryptocurrency . Halal . Haram . Sunni-Shi'a

What criteria can be used to assess whether a specific cryptocurrency is allowed based on Shia teachings? I have heard some cryptocurrencies involve prohibited activities, so how can I identify if trading a specific cryptocurrency is permissible or not?

Our great Maraaje' of Taqleed have different opinions on cryptocurrency as some of them allow dealing with it, and some don't allow while few of them don't have any verdict yet.

Those scholars who allow dealing with cryptocurrency include Ayatullah Sayyed Moosa Shubairi Zanjani, do not differentiate between cryptocurrencies as far as dealing with it does not contradict or break the law of your country and it should not harm others.

Wassalam.

186919

Investment . Cryptocurrency

Is it permissible in Islam to receive fixed profit on investments from a crypto mining company which is owned by non-Muslims?

Fixed profit makes the deal a sort of interest which is unlawful in Islam. Many of our scholars say that it is permissible for a Muslim to receive interest given by non Muslim which lawful according to them.

Wassalam.

185428

Meme . Money . Cryptocurrency

Is it considered allowed to generate a personal meme token and manipulate its price for financial gain, even if there are no other parties involved and it is solely done with one's own funds?

Generating your own personal meme token is allowed as far as you don't harm others.

Wassalam.

169454

Investment . Cryptocurrency . Loan

Is it allowed in Islam to engage in leveraged trading for cryptocurrencies or stocks, which involves borrowing money to trade with?

Yes it is permissible to engage in leveraged trading. As far as the trading itself is lawful.

Wassalam.

178245

Investment . Cryptocurrency

Is it permissible to invest in crypto meme tokens like Shiba Inu and Baby Doge currency, which have no known use cases as such?

Some Marraje' of Taqleed say that it is permissible to invest in crypto currencies as far as it does not cause harm to anyone and does not break the law of the land, while other Maraaje; of Taqleed did not issue any verdict in this matter, so you should follow your Marje' of Taqleed.

Wassalam.