Is cryptocurrency legal in Islam?

The debate surrounding cryptocurrency's legality in Islamic finance is complex and multifaceted. It touches on issues related to money creation, risk-taking, and the potential for misuse or exploitation.

The issue of cryptocurrency's legality within the framework of Islamic finance remains a contentious topic among Shariah scholars. Some argue that it contravenes Islamic principles, while others offer differing interpretations.

Despite the varying opinions, a general consensus has emerged among these scholars that cryptocurrency is considered haram, or forbidden, under Islamic law. This view stems from the unique nature of cryptocurrencies and their underlying technology.

Muslims are advised against investing in cryptocurrencies such as Bitcoin, Ethereum, and Litecoin due to their haram status. This guidance reflects the principles of Islamic finance, which prioritize ethical and socially responsible investments.

Some scholars argue that cryptocurrencies lack the physical attributes of traditional currencies, making them inherently unstable and unsuitable for Islamic investments. Others contend that the decentralized nature of cryptocurrencies conflicts with Islamic principles of central authority and control.