Mizan
Cross-asset · Crypto

Crypto compliance

The only place on the internet where the major cryptoassets are screened against every scholarly view side by side. Mizan summarises published rulings — it does not issue them.

Assets covered
12
major cryptos by mkt cap
Permitted (permissive)
6
Mufti Faraz Adam
Permitted (strict)
0
zero-tolerance view
Updated
May 2026
quarterly review
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How to read this page

Crypto compliance is the hardest question in halal finance today. No formal AAOIFI standard exists. Scholars are working from first principles (riba, gharar, maysir, qabd) without a settled framework. Reasonable scholars reach different conclusions on the same asset.

Mizan's job is to surface what every credible scholar has actually written or said about each asset, with sources — not to issue a single Mizan verdict. Read the citations. Choose your scholar. Ask a qualified mufti for your specific situation before acting.

None of this is investment advice. Crypto markets are volatile; even halal-permissible holdings can lose substantial value. Allocate accordingly.

The assets

What every scholar says

BTCBitcoin

Decentralised digital store-of-value, fixed supply 21M, no underlying cash flows.

Market cap
$1.3T
The honest summary

Most contemporary scholars permit Bitcoin as a tradable asset; a minority view treats it as gharar (excessive uncertainty). The conservative position is permissible-with-caution.

Mufti Faraz Adam (Amanah Advisors)
Halal

BTC qualifies as māl (wealth) and a tradable asset; permissible to own and trade for genuine investment purposes.

Source
Mufti Taqi Usmani
Doubtful

Initially cautious due to absence of underlying tangible value; has not issued an outright impermissibility ruling. Treats as area of legitimate disagreement.

AAOIFI
No consensus

No formal AAOIFI standard yet. Major Islamic banks (Al Rajhi, Kuwait Finance House) have offered crypto custody for retail.

Sistani office (Ja'fari)
Doubtful

Permissibility depends on whether the underlying activity violates Islamic principles; no blanket ruling for or against.

Source
Strict / zero-tolerance
Not halal

Lack of underlying tangible value + speculative volatility constitutes maysir (gambling-adjacent). Not permissible.

ETHEthereum

Programmable blockchain with native asset ETH; powers smart contracts including some impermissible applications.

Market cap
$360B
The honest summary

Owning ETH itself is broadly viewed as permissible. Earning yield via staking or DeFi requires additional scrutiny because the underlying activity may involve riba.

Mufti Faraz Adam (Amanah Advisors)
Halal

ETH as a utility token is permissible to own. Proof-of-stake rewards: permissible if structured as a service fee, problematic if structured as guaranteed yield (riba-like).

Source
Mufti Taqi Usmani
Doubtful

Same caution as Bitcoin plus added concern over smart-contract platforms hosting impermissible activity.

Sheikh Joe Bradford
Halal

Ownership permissible; specific use-cases require case-by-case analysis. Avoid staking pools that guarantee fixed returns.

Sistani office (Ja'fari)
Doubtful

Same framing as Bitcoin — depends on use; khums applies on annual surplus.

Strict / zero-tolerance
Not halal

Same as BTC; further compounded by smart-contract DeFi risk.

SOLSolana

High-throughput smart-contract chain; native asset SOL is staked for network security.

Market cap
$80B
The honest summary

Same logic as ETH but with younger track record. Permissibility hinges on the activity yield is derived from.

Mufti Faraz Adam (Amanah Advisors)
Halal

SOL ownership permissible. Staking rewards permissible if framed as a service fee, not a guaranteed return.

Mufti Taqi Usmani
Doubtful

No specific ruling on SOL; general crypto caution applies.

Sistani office (Ja'fari)
Doubtful

Use-case dependent.

Strict / zero-tolerance
Not halal

Same as ETH.

USDCUSD Coin

Fiat-backed stablecoin issued by Circle, redeemable 1:1 for US dollars.

Market cap
$60B
The honest summary

Holding USDC is broadly viewed as permissible because it is essentially a digital dollar — but the issuer earns riba on the reserves, and yield programs are riba.

Mufti Faraz Adam (Amanah Advisors)
Halal

Holding for utility (settlements, payments) is permissible. Yield-bearing USDC products are NOT permissible (interest-bearing).

Source
Mufti Taqi Usmani
Doubtful

Holding for transactional purposes is fine; treating USDC as a yield-generating asset is impermissible.

AAOIFI
Doubtful

No formal standard. The issuer's interest income on reserves is haram; the user's mere holding for transactional purposes is permissible.

Strict / zero-tolerance
Not halal

Indirect participation in the interest-based reserve model.

USDTTether

Fiat-backed stablecoin issued by Tether, redeemable 1:1 for USD with disputed reserve composition.

Market cap
$110B
The honest summary

Same Shariah logic as USDC. Additional concern: reserve transparency. Most scholars say avoid where possible.

Mufti Faraz Adam (Amanah Advisors)
Doubtful

Reserve opacity adds gharar concern beyond the standard stablecoin analysis. Prefer USDC if possible.

Sheikh Joe Bradford
Doubtful

Avoid where alternatives exist due to transparency issues.

Strict / zero-tolerance
Not halal

Same as USDC plus gharar.

BNBBNB (Binance)

Exchange token of Binance; used for trading-fee discounts and gas on BNB Chain.

Market cap
$95B
The honest summary

Tied to an exchange that lists many haram tokens and offers leveraged products. Most scholars treat with caution; strict view rejects.

Mufti Faraz Adam (Amanah Advisors)
Doubtful

BNB itself is a utility token but the issuer's business involves impermissible products (futures, margin). Caution advised.

Strict / zero-tolerance
Not halal

Direct participation in an exchange running riba-based products.

XRPRipple

Native asset of the XRP Ledger; used for fast cross-border bank settlements.

Market cap
$65B
The honest summary

Used by traditional banks for settlement — utility argument favours permissibility. Centralisation concerns lead some scholars to caution.

Mufti Faraz Adam (Amanah Advisors)
Halal

Genuine utility for bank settlement; permissible to own.

Strict / zero-tolerance
Not halal

Same general crypto caution; serves conventional (interest-based) banking infrastructure.

ADACardano

Proof-of-stake smart-contract platform; native asset ADA.

Market cap
$18B
The honest summary

Same framework as ETH; ownership broadly permissible, staking yield requires structuring scrutiny.

Mufti Faraz Adam (Amanah Advisors)
Halal

Permissible to own; staking treated as ETH.

Strict / zero-tolerance
Not halal

General crypto rejection.

DOGEDogecoin

Meme coin with no underlying utility or development roadmap.

Market cap
$30B
The honest summary

Almost universally treated as maysir (gambling) — pure speculation with no underlying value or utility.

Mufti Faraz Adam (Amanah Advisors)
Not halal

No utility, pure speculation; meets the definition of maysir.

Mufti Taqi Usmani
Not halal

Gambling-adjacent.

Sheikh Joe Bradford
Not halal

Speculation without underlying value.

Strict / zero-tolerance
Not halal

Categorically.

SHIBShiba Inu

Meme coin spawned to ride Dogecoin's wake.

Market cap
$12B
The honest summary

Same as DOGE — universally rejected as speculative meme asset.

Mufti Faraz Adam (Amanah Advisors)
Not halal

Meme asset, pure speculation.

Strict / zero-tolerance
Not halal

Categorically.

XMRMonero

Privacy-focused cryptocurrency that hides transaction amounts and parties.

Market cap
$3B
The honest summary

Privacy is permissible in principle, but the de-facto use of fully untraceable coins facilitates impermissible activity. Most scholars advise avoidance.

Mufti Faraz Adam (Amanah Advisors)
Doubtful

Permissibility depends on usage; de-facto association with illicit use raises concerns.

Strict / zero-tolerance
Not halal

Avoid.

AAVEAave

Decentralised lending protocol; deposit assets to earn interest, borrow against collateral.

Market cap
$4B
The honest summary

Holding AAVE token may be permissible as ownership in a protocol; *using* Aave to earn yield or borrow is riba and not permissible.

Mufti Faraz Adam (Amanah Advisors)
Not halal

Core protocol mechanic is interest-based lending. Token represents governance over an impermissible activity.

Strict / zero-tolerance
Not halal

Direct riba protocol.

What we don't cover

And why

  • NFTs. Too varied to generalise — some are permissible art, some are speculation, some include impermissible imagery. Per-NFT analysis is beyond Mizan's scope.
  • ICOs / token launches. Mostly speculative; no scholar issues blanket permissions on unlaunched tokens.
  • DeFi yield strategies. Lending protocols (Aave, Compound) and most yield-farming setups involve riba. We mark them ‘not halal’ categorically.
  • Wrapped / synthetic assets. Inherit the compliance of the underlying plus added gharar concerns.

Disagree with a take here? Email methodology@mizaninvesting.com with the citation. Updated quarterly from public scholarly publications. Back to Discover.