Fatwa No : 47117
Ruling on future and spot trading in cryptocurrency

Ruling on future and spot trading in cryptocurrency

I have heard that in to cryptocurrency, future trading is Haram and spot trading is Halal. Qabza (possession) of our coins occurs in spot trading. If spot trading is Haram, I have purchases a few coins through spot trading, so what should I do now? Should I withdraw the value of the coins or forgo it?

الجوابُ حامِدا ًو مُصلیِّا ً

Cryptocurrency is not something physical, rather it is virtual form of currency which can be used to perform monetary transactions. However, the law of the land does not permit its usage as an alternative for fiat currency and for making purchases. Furthermore, fraud and deceit is very common when it comes to investing in bit-coins and other forms of cryptocurrency, hence one must refrain from investing in it. However, if the questioner has already invested in it, then he should withdraw the value of his investment, and give the amount gained as profit in charity without the intention of attaining rewards.
And Allah knows best.