Is Crypto Halal? How Each Coin Is Screened

Short answer: there is no single answer that covers all of crypto. Whether a particular cryptocurrency is considered Shariah-compliant depends on that coin: what the project does, what the token gives its holders, how any rewards are generated and whether the project is legitimate. That is why Sharlife screens coins one by one instead of giving one verdict for the whole market.

This page explains the general picture. It is educational and is not a fatwa or a religious ruling. For the current status of any coin, use the live screening pages linked below.

Why the answer depends on the coin

"Crypto" covers thousands of very different assets. Some are networks built for payments or applications. Others are tokens tied to a specific business, a lending or yield product, or simply an internet trend. Because their purposes, rights and reward structures differ, they cannot all be assessed in the same way. A screening approach looks at each asset's own features against a set of criteria.

Sharlife's methodology page states its overall stance this way: based on many Shariah scholar viewpoints, it concludes that cryptocurrency activity and transactions are permissible with strict rulings. The "strict rulings" part is what the coin-by-coin screening is for.

What the Securities Commission Malaysia's Shariah Advisory Council resolved

In Malaysia, digital assets regulated under the Securities Commission Malaysia (SC) consist of digital currency and digital token. Their definition and scope are prescribed under the Capital Markets and Services (Prescription of Securities) (Digital Currency and Digital Token) Order 2019.

The Shariah Advisory Council (SAC) of the SC discussed three issues:

• whether digital assets can be recognised as mal (asset) from a Shariah perspective;
• whether digital assets can be classified as currency or `urudh (goods); and
• how to determine the Shariah status of a digital token.

At its 233rd meeting on 29 June 2020 and its 234th meeting on 20 July 2020, the SAC resolved the following, as presented on our methodology page:

1. Digital currency

Digital currency is recognised as mal from a Shariah perspective. The SAC viewed it in two scopes:

• Digital currency based on technology without any underlying: categorised as `urudh and not a currency from a Shariah perspective. It is not categorised as a ribawi item, so its trading is not subject to the principle of bai` al-sarf (currency exchange).
• Digital currency backed by ribawi items: if backed by gold, silver or currency, it is categorised as currency and its trading is subject to bai` al-sarf. If backed by other ribawi items, it is categorised as amwal ribawiyyah and its trading is subject to ribawi requirements.

2. Digital token

A digital token is recognised as mal under the category of `urudh from a Shariah perspective. The requirements are:

• proceeds raised must be utilised for Shariah-compliant purposes;
• the rights and benefits attached must be Shariah-compliant; and
• for mixed activities, existing SAC resolutions on sukuk proceeds and business activity benchmarks apply.

In plain terms, the resolution sets out how digital assets are categorised and what conditions apply. It does not say that every coin passes, which is why each coin still needs to be checked.

How Sharlife screens each coin

Sharlife's screening criteria have three pillars. Full details are on the methodology page.

Shariah analysis

1. Project evaluation: ensuring that the projects underlying the token issuance adhere to Shariah principles and are free from non-compliant activities.
2. Token evaluation: verifying that the token provides inherent value and that its associated benefits do not conflict with Shariah principles.
3. Reward system evaluation: ensuring that the methods offered for users to generate additional tokens are devoid of any elements contrary to Shariah principles.

Legitimacy analysis

• Project authenticity via smart contract audit: ensuring the project's smart contracts are audited to minimise risks and verify that the project operates as intended.
• Community engagement: ongoing communication with the community, with regular updates on the project's progress.
• Clarity of information: the whitepaper and related documentation provide comprehensive and transparent details about the project.

People analysis

• Education: team members have relevant and verifiable educational qualifications.
• Experience: team members have relevant industry experience.
• Legal cases: team members are free from any legal charges or issues.

The result of this screening is shown on each coin's own page. Statuses can be reviewed over time, so always check the live page rather than relying on a saved list or a social media post.

Check a coin

To see the current Shariah status of a specific cryptocurrency:

• Browse the full list on the crypto Shariah screener, which shows each coin's status alongside its market data. You can also request a review if a coin is missing.
• Check Bitcoin on its Bitcoin screening page.
• Check Ethereum on its Ethereum screening page.

Frequently asked questions

Is crypto halal in Malaysia?

In Malaysia, the SC's Shariah Advisory Council resolved in 2020 that digital currency and digital tokens are recognised as mal (asset) from a Shariah perspective, with conditions depending on how the asset is categorised and, for tokens, how proceeds are used and what rights and benefits are attached. This does not mean every coin is compliant. Each coin's status depends on its own features, so check it on the crypto Shariah screener.

Is staking halal?

Our staking guide gives its short answer like this: based on Sharlife's evaluation of staking's general structure, staking is deemed permissible under Shariah for technology-based digital assets that are not classified as ribawi. The guide explains the reasoning, the contracts used to understand staking and the points to check before staking a particular asset. Read the full explanation in Is Staking Crypto Halal?

Are meme coins halal?

Our meme coin guide explains that meme coins generally lack clear utility, which raises Shariah concerns, alongside issues such as excessive speculation, unclear project details and links to pump-and-dump schemes. It also stresses that, for the actual status of a particular coin, you should rely on the result shown on the screener rather than on general reasoning alone. Read more in Meme Coins: Halal or Haram?

Does this page give a ruling on any coin?

No. This page is educational and is not a fatwa. It explains how coins are assessed. Each coin's current status is shown only on its live screening page. If you need a personal religious ruling, consult a qualified scholar.