Is Bitcoin Halal or Haram? What Muslim Scholars Say

Learn whether Bitcoin is permissible with this comprehensive guide

Co-authored by Rabia M. Baig and Bertha Isabel Crombet, PhD

Last Updated: January 27, 2026 Fact Checked

Is Bitcoin haram or halal?

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Reasons It’s Haram

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Reasons It’s Halal

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Finance in Islam

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Final Takeaways

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Video

In Islam, the subject of Bitcoin has been hotly debated in recent years. As the cryptocurrency continues to grow in popularity, Islamic scholars have begun sharing their views. So, is the use of Bitcoin halal (permissible) or haram (forbidden)? If you’re curious to learn more about this financial aspect of Islam, keep reading for a full Bitcoin breakdown. Plus, learn what Islam education expert and motivational speaker Belal Elkadri has to say about rules in Islam.

Is Bitcoin haram in Islam?

There is no consensus on whether Bitcoin is haram or halal. Some Muslims consider Bitcoin haram due to its unstable, unregulated, and unpredictable nature. Others deem it halal because its value is based on social agreement, and it can be used for good. Ultimately, it's up for interpretation and depends on each person.

Section 1 of 5:

Is Bitcoin haram or halal?

Scholars are divided when it comes to labeling Bitcoin as haram or halal. Bitcoin is a largely unregulated cryptocurrency that is not governed by banks. Created in 2009, Bitcoin’s lack of regulation is the main argument against it because Muslims have strict rules of finance that don’t allow uncertain or risky investments. However, scholars are struggling to classify it as either permissible or forbidden because it’s still a relatively new currency and technology.^{[1]
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- "Haram are things that are forbidden, where if you do them, you get bad deeds for them," Elkadri explains. "But if you stay away from them, you actually get good deeds from staying away," he concludes.^{[2]
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  Belal Elkadri
  Islam Education Expert & Motivational Speaker
  
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- Some Islamic authorities, like the Grand Mufti of Egypt and the Turkish Government, have spoken out against Bitcoin. They believe Bitcoin is haram due to its instability, lack of oversight, and potential for immoral activities.^{[3]
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- Other scholars argue that the technology is too new to be fully understood, especially since it’s constantly evolving. They believe that the ever-changing nature of this cryptocurrency is not enough for it to be deemed haram.
Meet the wikiHow Expert

Belal Elkadri is an Islamic education expert and motivational speaker. With 10 years of experience, he is passionate about challenging the stigmas plaguing the Muslim community and bridging the gap through education.

Section 2 of 5:

Reasons Why Bitcoin is Haram

Bitcoin may be haram due to its instability and potential for immoral acts. Some scholars, like Shaykh Haitham al-Haddad, view Bitcoin as haram because it's not based on any real value. Essentially, they see it as a fake currency made up of code. They also argue that it’s not backed by real-world assets, like gold or silver. According to Sharia Law, the moral code that Muslims abide by, all currency must represent value in the real-world economy.^{[4]
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- Additionally, Bitcoin’s volatility and anonymity are believed to hold too much potential for haram activities.
  - These may include gambling, pornography, and money laundering.
- The high level of uncertainty and risk associated with Bitcoin is the reason why many Muslims stay away and caution other Muslims to do the same.

Section 3 of 5:

Reasons Why Bitcoin is Halal

Bitcoin may be deemed halal because the technology is new and evolving. Some Muslims believe that this cryptocurrency is too new of a technology for scholars to fully understand and officially dismiss as haram.^{[5]
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Rabia M. Baig
Muslim Content Creator

Expert Interview} Similarly, they’re unable to find relevant examples in history that they can turn to for guidance on the matter. Overall, many Muslim authorities consider Bitcoin to be too complex a subject to rule out as haram.^{[6]
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- Influential members of the community, like Mufti Faraz Adam and Ziyaad Mahomed, have spoken in favor of Bitcoin.^{[7]
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  - According to Islamic principles, everything is halal until there is evidence to the contrary.
- Some scholars agree that Bitcoin can be halal as long as it’s compliant with Sharia Law, which is similar to their views concerning the internet. While the internet can be used for both good and bad, it’s considered halal as long as it doesn’t violate Muslim beliefs.
- While some scholars don’t believe Bitcoin counts as mal, or owned wealth and property, scholars in favor of Bitcoin disagree. They think that Bitcoin does have real economic value, strictly based on the social agreement upheld by its users.

Section 4 of 5:

Finance Rules in Islam

For Muslims, financial matters must follow Sharia Law. Sharia Law dictates all aspects of Muslim life, including finances. These rules are meant to protect and promote integrity while limiting temptation. For instance, all money should be backed by real-world assets or services. This assures the power and value of the currency in the economy.^{[8]
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Research source} Additionally, all transactions must be ethically sound. Elkadri adds that Muslims do not “lie” or “cheat,” which is how they “cleanse [their] hearts.”^{[9]
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Belal Elkadri
Islam Education Expert & Motivational Speaker

Expert Interview}
- All parties involved in a transaction should be transparent, leaving no risk of deceptive, fraudulent, or otherwise immoral activity.
- Riba, or interest, is forbidden. This means that Muslims are not able to take out loans that guarantee accrued interest.
  - This is viewed as an unethical practice, since money should only be exchanged for labor and goods, and debts should not increase out of thin air.
- Gharar, or extreme uncertainty, is also haram when it comes to selling, trading, or investing. It’s considered too high-risk and is linked to gambling in the Quran.^{[10]
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- Zakat, or charity, is another key marker of Islam and one of the five pillars. Muslims are expected to give a small percentage of their yearly income to the needy.^{[11]
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  - Elkadri defines zakat as “the almsgiving that Muslims give as a form of charity to the poor.”^{[12]
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    Belal Elkadri
    Islam Education Expert & Motivational Speaker
    
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Section 5 of 5:

Final Takeaways

Whether Bitcoin is haram or halal is up to interpretation. While some Muslims believe cryptocurrency to be too unstable and unregulated to be halal, others disagree. Those in favor of Bitcoin encourage other Muslims to remain open to new technological advancements.^{[13]
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Rabia M. Baig
Muslim Content Creator

Expert Interview} Like the internet, Bitcoin can be used for good. Many Muslims are optimistic about the future of cryptocurrency, hoping it will begin aligning more with Islamic laws.^{[14]
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- Some important figures, like Mufti Muhammad Abu-Bakar, have decided that Bitcoin is halal, but caution that Muslims be extra prudent, as the currency still comes with a lot of risk.
- Deciding to use Bitcoin is a personal choice for Muslims, based on discretion and individual beliefs. Consult with your imam or local scholar for additional guidance.