Cryptocurrency

Answer

Assalāmuʿalaykum Wa Raḥmatullāhī W Barakātuh

There are two important points to consider:

1. It is incorrect to completely dismiss electronic modes of money as accepted modes of currency.
2. It is incorrect to rule cryptocurrencies as an accepted norm which could possibly give rise to its permissibility since it is currently in the infant stages of its development.

Since it is a grey area – an area of doubt – we advise that such type of investments be avoided until such time where either its permissibility or impermissibility can be clearly ruled by the Islamic Jurists who are conducting research in this field on an ongoing basis, testing for its norm of acceptability.

The Prophet ﷺ said:

That which is Ḥalāl is clear, and that which is Ḥarām is clear, however, between that (Ḥalāl and Ḥarām) are matters that are doubtful (not clear); many of the people do not know whether it is (clearly) Ḥalāl or Ḥarām. Whoever leaves out (that which is doubtful) to protect his religion and his honor, then he will be safe, and whoever falls into something from them (doubtful things), then he soon will have fallen into Ḥarām. [Sunan Al-Tirmidhī]