Many Muslims searching about cryptocurrency come across the work of Mufti Faraz Adam, one of the more prominent scholars discussing Bitcoin from a Shariah perspective.
But what does he actually say? Does he consider Bitcoin halal—or is the answer more nuanced?
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His Starting Point: Permissibility in Transactions
Mufti Faraz Adam begins from a core Islamic principle: financial transactions are generally permissible unless there is clear evidence to prohibit them.
This framework is important because it shifts the question from “why is Bitcoin allowed?” to “is there a clear reason to prohibit it?”
Does Bitcoin Actually ‘Exist’ in Islamic Law?
One of the early debates he addresses is whether Bitcoin qualifies as something that exists (mal) in Islamic law.
He argues that physical form is not required—many modern assets are intangible but still clearly exist and provide value.
Because Bitcoin can be stored, transferred, and accessed, it meets the criteria of property in this context.
Is Bitcoin a Currency or an Asset?
A major point of debate in his analysis is how Bitcoin should be classified.
Scholars are divided into two main views:
- Some consider Bitcoin a commodity or asset
- Others consider it a form of currency
Mufti Faraz Adam presents both perspectives rather than forcing a single conclusion.
What About Risk and Volatility?
One of the most common objections to Bitcoin is its volatility.
He addresses this directly by explaining that risk itself is not prohibited in Islam.
In fact, risk is a necessary component of profit—what matters is the type of risk involved.
Volatility alone does not automatically make an asset impermissible.
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So Does He Say Bitcoin Is Halal?
Mufti Faraz Adam does not present a simplistic yes-or-no answer.
Instead, his work supports the view that Bitcoin can be considered permissible within the framework of Islamic finance—while acknowledging ongoing scholarly debate.
This is why Bitcoin is often treated as a gray-area asset.
How This Fits With Other Scholarly Views
His position aligns with a broader trend among scholars who take a conditional or permissive approach.
For a broader view of the debate, see:
And how major institutions approach it:
How Muslims Should Approach Crypto Today
Rather than focusing only on labels, the more practical approach is understanding how crypto is used.
This includes:
- Avoiding speculation and gambling behavior
- Avoiding leverage and interest-based platforms
- Treating crypto as part of a broader portfolio
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The Bottom Line
Mufti Faraz Adam’s work provides one of the more structured Shariah analyses of Bitcoin—but it does not eliminate the broader scholarly debate.
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His framework supports the idea that Bitcoin can be permissible under Islamic principles, while still requiring careful and responsible use.
For most investors, the key question is not just whether Bitcoin is halal—but how it fits into a balanced and ethical financial strategy.
