Is Bitcoin Cash Halal: Is BCH Halal? - Crypto Ummah (2024)

FAQs

Is bitcoin cash halal? ›

In this article we do a complete shariah screening of Bitcoin Cash to determine if BCH is a halal or haram cryptocurrency. The short answer is yes, Muslims may trade and invest in BCH coin, but have a read and and see if you feel comfortable about it first.

Islamic banking laws are also anti-interest so the technology, pricing, and buying and selling of cryptocurrency money is deemed halal by many Islamic scholars who rely on the teachings of Prophet Muhammad PBUH when seeking guidance about permissibility (ultimately, only Allah knows best).

As it is, cryptocurrency is not considered halal by most practitioners, unless there is an acceptable underlying asset. Otherwise, it is worse than fiat currency. If that underlying asset is fiat currency, that is another issue. If it is contracts, such Ethereum, there is still some scepticism.

Most scholars hold BNB to be halal, we also share this view. Continue reading for a deep dive into Binance coin.

What are Mufti Menk's views on investing in Bitcoin? Mufti Menk said, there is nothing haram about Forex or crypto.

Bitcoin Cash is a cryptocurrency created from a Bitcoin blockchain fork, which occurs when users resist change or reprogram a blockchain to operate the way they want it to. Bitcoin Cash forked in 2017 after developers disagreed about the direction Bitcoin was taking.

It is permissible to deal in crypto currency, if the exchange takes place immediately and the transaction is free of any infractions of Islamic teachings, such as using financial leverages and dealing in differences, futures and so on.

Investing in stocks of companies that operate in compliance with Islamic principles is generally considered halal. This involves selecting companies that avoid involvement in industries such as alcohol, gambling, and pork, aligning with ethical and Sharia-compliant business practices.

Despite the claims of many religious organisations and Islamic academics, some Islamic scholars believe that bitcoins are halal, while others believe as haram.

Conditions for Permissibility

For cryptocurrency trading to align with Shariah principles, it must adhere to specific guidelines outlined by Islamic finance experts. Transactions should avoid elements deemed haram (forbidden) in Islam, such as riba (interest), gharar (uncertainty), and maysir (gambling).

Which crypto is halal to buy? ›

Examples of halal cryptocurrencies include OneGram (OGC), backed by physical gold, X8X Token, supported by a basket of eight fiat currencies and gold, and HelloGold (HGT), another gold-backed digital currency.

Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram.

Crypto in general is halah to buy, sell or keep as an asset, but for binance (or any other exchange) only spot trading is halal, so margin trading, futures, staking, defi staking, earn services, loans, dual investments, borrowing ALL are Haram, and binance in particular even for normal staking gives you the rewards + ...

In conclusion, Cardano is a Halal cryptocurrency that aligns with Islamic finance principles.

Trading futures in cryptocurrency is generally considered haram in Islamic finance. This is due to its speculative nature, likened to gambling, and the involvement of uncertainty and risk, which contradict Islamic principles emphasizing risk-sharing and avoiding speculation.

Crypto income is taxed as ordinary income at its fair market value on the date the taxpayer receives it. Here are the most common examples of what is considered crypto income: Receiving crypto as payment for providing a service. Mining crypto and earning rewards.

All Bitcoin transactions are public, traceable, and permanently stored in the Bitcoin network. Bitcoin addresses are the only information used to define where bitcoins are allocated and where they are sent. These addresses are created privately by each user's wallets.