Malaysia’s top shariah specialist confirms that crypto trading is not only a legitimate way to earn a living but also religiously acceptable in Islam, albeit with certain conditions. Most of the Islamic world has been staying away from the cryptocurrency and Bitcoin trading owing to the questions such as; Is Bitcoin halal or haram? leading to, Is crypto trading halal or haram? While different crypto trading halal fakes have reportedly been conning people.
Discussions within the Muslim world upon the use of cryptocurrency has been long looked at as questionable since shariah financial bodies were yet to understand and conclude the matter. Studies and findings had been underway to learn the ins and outs of cryptocurrency in lieu of Islamic rulings; however, most jurists were against the Bitcoin and cryptocurrency until now.
So I crypto trading halal in Islam?
Chairman of Shariah Advisory Council at Malaysian Central Bank, Securities Commission of Malaysia (SC), and the Labuan Financial Services Authorities, Datuk Dr. Mohd. Daud Bakar deemed it acceptable for Muslims to invest and trade through any recognized crypto exchange including but not limited to Bitcoin. This may not have settled the crypto trading halal or haram debate just yet but this is a good start.
Malaysian financial markets are expected to see a surge in crypto-trade following this breakthrough fatwa resolution.Dr. Bakar is inclined towards developing Malaysia’s unique stablecoin to further enhance digital trade. However, the coin, in order to remain shariah-compliant needs to be supported by specific non-ribawi items such as permissible commodities or ventures. Ribawi items: Gold, silver, or anything sold by the measure of its weight.
Bakar’s perspective is positively regarded within the Muslim world for his work in the field of Islamic finances has been highly sought for. A few institutions he has worked with in the past include;
- Morgan Stanley
- Noor Islamic Bank
- Salama Islamic Insurance (UAE)
- Bank of London and the Middle East – UK –
- Jadwa-Russell Islamic Fund
- Salama Islamic Insurance (KSA)
- Accounting and Auditing Organisation for Islamic Financial Institutions (Bahrain)
Since this rationale of using cryptocurrency is backed by the limitation of using it as an exchangeable commodity, it rules out any hesitation of its lawfulness within Islamic trade. Its use is equalized to the purchase of any digitized product such as an e-ticket. Malaysian Securities Commission has further highlighted the possibility for organizations to raise capital through issuing digital coins; however, this remains subject to certain limitations.
