In the name of Allah, the Inspirer of truth
Bitcoin and cryptocurrencies have existed for over fourteen years. Throughout this period, both scholars and non-scholars have struggled to understand its Sharʿī status, largely because its internal mechanics and workings are not easily comprehensible. This complexity has made its status particularly challenging to determine, with one scholar even characterising it as a type of “jinn.”
Whilst I personally could not identify any prohibitive aspects in cryptocurrency, I had not previously had the opportunity to conduct thorough research into the matter. I had encountered various opinions regarding its permissibility and impermissibility from different scholars and financial experts. However, over these years of development, its operational mechanisms, various applications, and economic impact, particularly regarding inflation, have become increasingly clear.
Our formal investigation began when the question of cryptocurrency was included in the agenda by the Jamiat Ulama-i-Hind’s Idara Mabahith-e-Fiqhiyya and distributed to all its members for deliberation. The Jamiat Ulama-i-Hind, established during India’s independence movement, has consistently served as a leading organisation for Islamic religious guidance and social reform. In 1980, recognising the need to address contemporary Islamic jurisprudential issues, they established the Idara Mabahith-e-Fiqhiyya under Maulana Muhammad Miyan Deobandi’s supervision. After his passing, this work continued under different forms until 1990, when at the persistent encouragement of Amir-ul-Hind Mawlānā Sayyid Asad Madani, the executive committee formally revived the Idara Mabahith-e-Fiqhiyya.
The seminar takes place in different locations around India each year, and I have been attending since 2018. Each year, questions are sent to over two hundred muftis several months before the seminar. Typically, 60 to 70% of them formulate and submit responses to the review committee. These responses are then summarised by the committee and presented at the seminar for deliberation over a two-and-a-half-day period. The final resolutions are passed after extensive debate and discussion. This gathering usually brings together these muftis and jurists, along with other distinguished scholars from Darul Ulum Deoband and other institutes.
We received the cryptocurrency question for their 19th annual seminar several months before the event, which was scheduled to be held at Darul Ulum Pokhran, Jaisalmer, Rajasthan in October 2024. We spent several weeks researching and deliberating over the issue with our Ifta class students and teachers before preparing our response. We submitted our findings approximately two months before the November date.
I attended the seminar in person, and despite our preliminary conclusion of permissibility, I remained receptive to counter-arguments, willing to adjust or completely change my position if presented with compelling evidence. The seminar reviewed over a hundred submissions, with opinions almost evenly divided. However, ultimately, the general assembly concluded that there wasn’t sufficient clarity on the matter to permit its use at present.
A telling moment occurred during our departure when our local village driver, overhearing our discussion about Bitcoin, asked about its halal status and revealed that he too had invested in it. This casual exchange carried profound significance. I remarked to him that had he shared this information the day before, I could have informed the attendees about how Bitcoin had reached even rural Indian villages, demonstrating that it wasn’t something unreachable, arcane, or difficult to understand. This would have challenged the perception that cryptocurrency was overly complex or exclusively urban.
Since nothing emerged during the seminar to change my view towards impermissibility, I had our paper further edited and strengthened with additional evidence to finalise our position. Having received multiple queries about our stance, we are finally able to present this paper, which has been meticulously worked on by one of our distinguished students, Mawlana Huzayfah Mangera. The paper presents our research, arguments, and responses to common confusions and objections against cryptocurrency, alongside a crucial history of money that helps contextualise Bitcoin’s role.
We humbly seek Allah’s acceptance and guidance in this matter, as in all matters where we are consulted for our opinion. May He grant us clarity of understanding in these complex issues and enable us to provide sound guidance. We pray for His protection from misunderstandings and from treading incorrect paths in our interpretations. May He guide us always to what is right and true.
Abdur-Rahman Mangera
The Fatwa Centre
Whitethread Institute
25 May 2025 | 27 Dhū ’l-Qaʿdah