Tuesday, May 21, 2024
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Permissibility of cryptocurrency and shares

Fatwaa ID: 724

السَّلاَمُ عَلَيْكُمْ وَرَحْمَةُ اللهِ وَ بَرَكَاتُهُُ
respected mufti, please inform with regards to jawaaz of cryptocurrencies, as well as trading stocks on the stock market

In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.

  1. It is permissible to invest in cryptocurrencies provided that they are not based on or created for anything impermissible and that there are no impermissible elements attached to the transaction.
  2. It is permissible to invest in stocks and shares provided that the main business of the company is not in violation of or contrary to the laws of Shari’ah and the company possesses a considerable amount of illiquid assets. Thus, it is impermissible to invest in shares of financial institutions, casinos, wineries, recreational drug companies, etc. Likewise, it is impermissible to invest in a company which only owns liquid assets.
    If a company that meets the above two conditions deposits their surplus funds in an interest-bearing account, then the shareholder must express his disapproval of such transactions, preferably during the annual general meeting of the company. Likewise, if the company takes interest-bearing loans, then too one may express his disapproval.
    It should be noted that when receiving dividends, if some of the funds are given from the interest-bearing accounts of the company, then a percentage of it must be given away in charity without any expectation of reward.
    It should also be noted that it is impermissible to deal with options, be it calls or puts.

And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين


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