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.

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Cryptocurrency

Is it allowed to buy into new cryptocurrency projects right when they get listed on an exchange and sell within a couple of minutes to make a quick profit?

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 4 years ago

The cryptocurrency dealings are still not very clear for many of our Maraaje' of Taqleed keeping in mind the contra-dictionary reports about it. That is why many of them did not give a verdict on this matter till now (2nd January 2022). We might expect verdicts from them after the matter is more clear. Yet, there are few leading Ulama who say that dealing in cryptocurrency business is permissible as far as it is within the regulations and not harming the economic system. According to this verdict, it is allowed to take part in such business. Quick profit or quick loss does not change the validity of the business as far as it is legal and not harming people.

Wassalam.

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Investment . Cryptocurrency

Is it allowed to invest in a company that invests in bitcoins and gives you a fixed profit?

1. Investing in crypto currencies is allowed according to many leading scholars.

2. Receiving fixed profit is not allowed because it is a type of usury. Your investment should get you a percentage from the profit, if any. Fixed amount of income is not allowed. It should be a fixed percentage from the real profit.

Wassalam.

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Rulings (Ahkam) . Cryptocurrency . Marja' . Sayyid

Can one take the rulings of another Marja' if their Marja' does not have an opinion on an issue? For example, if Sayed Sistani has no opinion on cryptocurrency, is it okay to own it, or must one see the next most learned Marja'?

When your Marja' has not issued a Fatwa (verdict) on a specific matter, you can refer to the second Marja' who is next highest in the degree of knowledge according to most senior Ulama of the Hawza.

Wassalam.

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Cryptocurrency

Is it permissible to buy bitcoins at low rates and sell when its price increases and earn profit without any active work or contribution?

Yes it is permissible to buy and sell like any other lawful businesses.
'Wassalam.

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Money . Investment . Cryptocurrency

Is it permissible to invest money in cryptocurrencies?

Yes it is permissible like any other business as far as it is real business and not gambling nor cheating in selling something which is not existing.

Wassalam.

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Cryptocurrency

Is it allowed to trade in cryptocurrencies such as Bitcoin?

According to many of our leading scholars who studied the present financial market, it is allowed to deal in crypto currencies as far as it is real trade and not gambling or non existing imagination.

'Wassalam.

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Cryptocurrency

Is bitcoin mining allowed according to Ayatollah Sistani?

Bitcoin or any other crypto currency mining is permissible.

'Wassalam.

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Cryptocurrency

What is the ruling regarding trading in cryptocurrency?

Amina Inloes, Amina Inloes is originally from the US and has a PhD in Islamic Studies from the University of Exeter on Shi'a hadith. She is the program leader for the MA Islamic Studies program at the... Answered 5 years ago

Cryptocurrency is one of those new issues that has some vagueness about it, both in terms of how it fits into understandings of shari'ah and also how it will fit into the world at large. Similar issues, in the past, were the emergence of cameras, credit cards, and democracy; it took time for there to develop both an understanding of the role they would play in the world, and also how to approach them from the angle of religious law. Only time will tell whether cyptocurrencies will eventually supplant state-regulated currencies in the way that digital bank accounts have, in many areas, supplanted cash, or state-regulated currencies supplanted things like coins with hard value (such as gold or silver).

Currently, due to the uncertainty regarding cryptocurrency, many (not all) scholars have approached the subject cautiously. Additional concerns include (a) the use of cryptocurrency for unlawful activities, (b) the illegality of cryptocurrency in some areas, and (c) the potential for harm/fraud.

Here is an article addressing fatwas from Shi'i scholars regarding Bitcoin, being the most common cyptocurrency: http://ijtihadnet.com/bitcoin-perspective-shiite-clerics-fatwas/

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Cryptocurrency . Marja'

Is it permissible, according to any Marja, to be a professional broker buying and selling cryptocurrency?

The answer of this question depends on the question on crypto currency itself whether it is real or not. Many of Muslim scholars are still not sure hence carrying on research on this matter. When the picture is clear for majority of the scholars, they will give their verdict on crypto currency.

You need to wait till this main question is answered, then the question of brokerage comes after that.

Wassalam.

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Cryptocurrency

What is the Fatwa of the major scholars on trading bitcoin and other cryptocurrencies?

Sayyed Muhammad Husaini Ragheb, Sayyed Muhammad Husaini Ragheb has a BA in Law from Guilan University, Iran and has also undertaken Hawzah studies in Qom. He used to be a Cultural Affairs director of Ethics Group of Al-Mustafa... Answered 5 years ago

Bismillah

According to:

Sayyed Sistani: According to obligatory precaution one must refrain from these transactions (i.e. you can refer to the second most knowledgeable jurist and follow his opinion).

Sayyed Khamenei: No response (i.e. you can refer to the second most knowledgeable jurist and follow his opinion).
It should be noted that in his opinion, it is necessary to observe the official laws of the country in this regard.

Sayyed Shobeiri Zanjani: If the use of such currencies is usually corrupt or illegal from an economical point of view, there is a problem with buying and selling them. (meaning according to obligatory precaution one must refrain from these transactions i.e. you can refer to the second most knowledgeable jurist and follow his opinion)

Sheikh Makarem Shirazi: Due to the many ambiguities that Bitcoin has, it is problematic (meaning according to obligatory precaution one must refrain from these transactions i.e. you can refer to the second most knowledgeable jurist and follow his opinion.)

Sheikh Vahid Khorasani: Buying and selling it is void.

Sheikh Saffi Golpayegani: It's forbidden and it's a type of eating up wrongfully. Allah is the All-Knowing

Sheikh Noori Hamedani: Engaging in these transactions is problematic (i.e. you can refer to the second most knowledgeable jurist and follow his opinion.)

Sheikh Hadavi Tehrani: Buying and selling Bitcoin is Haraam and as for other cryptocurrencies which do not have the problems of Bitcoin, it is permissible. (So his Fatwa about other cryptocurrencies is conditional to not having the problems of Bitcoin)

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Investment . Riba . Cryptocurrency

I buy crypto tokens for investment purpose. Some tokens offer rewards on allocating (staking) your tokens. The staked tokens get used for voting, and the company rewards you with more tokens. Is receiving tokens on the staked tokens considered Riba?

If you mean that the company rewards you with more tokens if you do more business with them or vote for them or bring more customers, then this reward is allowed
for you. This is when the activities of the company is investing in lawful business only.

Wassalam.

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Cryptocurrency . Fiat money

Is the purchase or sale of bitcoins allowed in Islam? Does it make a difference if they are used to make online transactions or accumulated for an expected rise in value against regular fiat currencies?

Buying and selling Bitcoins and other crypto currencies is allowed just like buying and selling any other coin.

Wassalam.