With the popularity of Bitcoin and other cryptocurrencies do not hesitate doubts whether it is halal or not. This is due to the possibility of high profitability and high volatility in the market, which threatens risk and large financial losses.
Islamic investors are aware of the prospects of a cryptocurrency economy. At the same time, the fundamental for the development of a cryptocurrency economy is an understanding of whether halal cryptocurrency is for Muslims or not. In this regard, the Muslims did not have an exact statement and doubts appeared. For a long time, the controversy continued between representatives of the Islamic Ummah.
In April 2018, Mufti Muhammad Abu Bakar, who is also the adviser on sharia law issues and compliance in Jakarta’s Blossom Finance, published an opinion on whether bitcoin is halal or haram. In his article, the expert argues that sometimes Bitcoin and other cryptocurrencies can be correct, that is, halal. Mufti Muhammad Abu Bakar writes that in some countries, such as the United States of America, the cryptocurrency is not officially approved and there is no legal status. However, there are institutions and shopping centers, where Bitcoin and other cryptocurrencies can be accepted as a means of paying for a service or any product. Therefore, in such cases, the cryptocurrency is accepted only as a payment method and is a common Islamic currency. The expert writes:
"I am convinced that cryptocurrencies can be an effective tool for the further development of Islamic finance."
Summarizing the above, we can conclude that a cryptocurrency economic system is not haram or halal by itself, it is a technology that can be turned to the benefit of Muslims and becomes, in that case, halal. However, to violate the norms of Sharia through any actions and technologies is uniquely haram.
According to the expert, bitcoin and blockchain technologies are well combined with Sharia ideas. Blockchain is unconditionally based on the right of ownership; this in particular corresponds to the Sharia, in contrast to banking.
More recently, Mufti Muhammad Abu Bakar has become Adab Solutions adviser on Islamic finance. The expert praised the company's activities and compliance with the principles of Sharia. In his article, he published his opinion and positive feedback about our company:
The inception of cryptocurrency and blockchain technology has disrupted the global financial sphere. Many start-ups and tech-based businesses entered in the market of cryptoassets by introducing their own digital tokens and cryptocurrencies. Despite the growth of crypto market in the last few years, the industry is remained between hype and controversies. Due to various interpretations of this new phenomenon, the Shariah compliance of it remained a major challenge for Muslims who wanted to enter in the market and make it beneficial for Muslim world and humanity at large.
The Adab Solutions is a pioneer and first cryptocurrency exchange which is committed to provide exchange and other services in the arena of crypto market with the norms and guidelines of Shariah. The ethical values and moral guidelines of Islam which are embedded in this project, not only benefit the Muslim world and rather serve the humanity across the globe in a best possible manner. It is worthy to note that Adab Solutions has taken on board various prominent Shariah Scholars who are not only well-versed in traditional Islamic studies, but they have a deep understanding of this novel market. I personally believe, that Adab Solutions as a first and pioneer Islamic cryptocurrency exchange has a great potential in prevalent Islamic Fintech industry and to serve the community in accordance with norms and ethical guidelines of Shariah. I hope that great combinatio
n of diverse expertise ranging from tech-guru to Shariah expert in Adab team will play a pivotal role in the success of this project.