Crypto Trading Laws in Islam, Halal or Haram?

Bittime - The question of whether crypto trading is halal or haram in Islam often arises, considering that the Koran was revealed long before the existence of these digital assets. 

Although there are no direct references to crypto, we can look to Islamic teachings to determine whether these trading practices are in accordance with sharia law. 

As a trader whose goal is to make a profit, it is important to ensure that the way you do it does not conflict with Islamic principles.

Understanding Crypto in an Islamic Perspective

Since its inception, crypto has been seen as similar to foreign exchange (forex), so there are ways to buy, sell and trade crypto lawfully. 

With the rapid development of the digital world, many Muslim traders are now wondering about the legal status of crypto. 

Considering that 25% of the world's population is Muslim, it is important to understand this issue. 

Halal Criteria in Crypto Use

Crypto can be considered halal if used as a form of digital money that fulfills the transaction functions permitted in Islam, similar to cash. 

If you use crypto to fulfill your daily transaction needs, then it is considered halal according to sharia law. Most scholars agree that assets that function like cash are halal.

Read too Is Bitcoin Halal or Haram? Sharia Perspective on Cryptocurrency

Is Crypto Halal or Haram?

The answer to this question really depends on how the crypto is used. In short, crypto is considered halal and in accordance with Islamic law as long as it is used for the right purposes. 

For example, if you get profits from trading crypto just like regular cash, then it is a halal way of trading. However, if you use crypto to earn interest or usury, then it will be considered haram.

Usury is an unfair advantage or interest charged in borrowing money. In Islam, usury is strictly prohibited. 

If you do not use crypto for gambling, alcohol, or other illegal activities that violate sharia law, then the trading can be considered halal.

Read too Blockchain Law in Islam: Is it Halal or Haram?

Difference between Halal and Haram Trading

All types of crypto can be considered halal if they are owned with the intention of being used as a transaction tool and meeting daily purchasing needs. 

Using crypto as an alternative payment system in countries such as Germany and Australia is also in line with Islamic law. As long as you don't keep crypto only for unclear profits or are involved in usurious practices, then trading is permitted.

However, the use of crypto becomes haram if it is used for illegal activities such as gambling or purchasing illicit products such as alcohol. If someone utilizes crypto as an investment platform to earn unauthorized interest, then this is also considered haram.

Read too Is Bitcoin Halal or Haram? This is what Ustadz Adi Hidayat said

Conclusion: Is Crypto Trading Halal or Haram?

Crypto can be categorized as halal if you comply with Islamic law when using it in everyday life. Crypto is similar to gold and silver in that it meets the basic requirements as a transaction tool. 

In contrast to fiat currency which is unlimited and can be printed by the government without restrictions, cryptocurrencies such as Bitcoin have limited quantities and comply with sharia law as long as they are used legally.

Many people confuse crypto and gambling; the two are very different. Crypto is a substitute for fiat currency and is not gambling unless it involves usury. Make sure you buy crypto from a trusted, verified broker to remain compliant with sharia law.

Read too Crypto Law in Islam According to Ustadz Adi Hidayat: Halal or Haram?

FAQ about Crypto Trading Laws in Islam

Is cryptocurrency trading halal in Islam?

Depends on the use. If it is used as a legal transaction tool and is not involved in usury or other illicit activities, then cryptocurrency trading is considered halal.

What makes crypto trading illegal?

Crypto trading becomes haram if it is used to earn interest (riba), gamble, or buy products/services prohibited in Islam, such as alcohol.

How do I ensure my crypto trading is Shariah compliant?

Make sure you use cryptocurrency for legitimate transactions, avoid usury, and trade through a broker that is verified and complies with sharia principles.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference

Halaltradingbrokers, Is cryptocurrency trading Haram or Halal in Islam?, Accessed March 10, 2025

Author: IN