What Makes a Cryptocurrency Halal?
Under Islamic finance principles (derived from the Quran, Sunnah, and scholarly consensus), a cryptocurrency is considered halal when it meets these criteria:
1. No Riba (Interest): The coin must not generate interest or be backed by interest-bearing instruments. This eliminates algorithmic stablecoins pegged to treasury yields and yield-bearing tokens that earn passive interest.
2. Real Utility (Mal Mutaqawwam): The token must represent genuine economic value — either as a medium of exchange, network access, governance, or utility. Pure speculation with no underlying utility is discouraged.
3. No Maysir (Gambling): Spot buying and holding is permissible. However, derivatives, leveraged trading, and perpetual futures contracts are not permissible as they resemble gambling.
4. No Gharar (Excessive Uncertainty): The coin must have transparent mechanics, a known supply schedule, and clear purpose. Coins with hidden tokenomics or fraudulent backing are excluded.
5. Haram Industry Exclusion: Tokens directly tied to gambling, alcohol, adult content, pork, or weapons manufacturing are excluded regardless of their technical structure.
Screen Any Coin for Halal Status
Use our AI-powered Shariah screener to check any cryptocurrency not on this list. Get instant halal/haram/debated classification with reasoning.