📄 A comprehensive scientific study: Halal trading in cryptocurrencies

Introduction
Recent years have seen a significant expansion in the use and trading of cryptocurrencies, especially with the growth of blockchain technologies and the proliferation of global trading platforms.
With this expansion, fundamental jurisprudential questions have arisen about the legality of trading these currencies from A Sharia Perspective.

This article presents a simplified scientific study that explains when cryptocurrency trading is "halal", focusing on three main criteria:

The first condition: the existence of a private blockchain for the currency
Scientific definition:
Blockchain It is a distributed and decentralized digital ledger that records all transactions and ensures transparency and security.

The importance of blockchain in Sharia law:
✔️ Currency you have Blockchain Private and independent, they are usually more transparent and less prone to fraud.
✔️ The existence of an independent blockchain shows that the coin is part of an actual technical project, and not just a fictitious speculative tool.

Examples:

Bitcoin has two independent blockchains

Ethereum (Ethereum) owns Blockchain Special Supports Smart Contracts

Conclusion:
Cryptocurrencies that lack a private blockchain or rely on unclear schemes are considered suspicious and are best avoided to avoid Forbidden or suspicious.

Second condition: Legitimacy of the currency project
Definition of a currency project:
Any digital currency issued by an entity, group, or organization, often for specific purposes such as:
✔️ Optimize financial systems
✔️ Support for decentralized applications
✔️ Facilitating digital transfers

Sharia standards for projects:
✅ The purpose of the currency must be legitimate and permissible in Islamic law.
❌ Coins are considered forbidden if their project supports:

1️⃣ Gambling and betting in all its forms
2️⃣ Trade in illicit substances such as:

• Liquor
• Drugs
• Products that harm society and public health

3️⃣ pornographic activities or supporting immoral content
4️⃣ based financial projects:

• Usury (interest)
• Excessive gharar (extreme ambiguity and illegal risk-taking)

✅ Steps to verify the legitimacy of a currency:

1️⃣ Review the currency's official website to make sure the goals and team in charge are clear
2️⃣ Read the Whitepaper that explains the technical and financial details of the project
3️⃣ Access to independent third-party assessments and analysis to validate the credibility of the project

Third condition: Legitimate trading method
Types of trading:
First: Spot Trading - Spot Trading Halal
✔️ You buy the currency and take ownership of your digital wallet directly
✔️ Fulfillment of the condition of "receiving" in jurisprudence
✔️ sells the coin later when its price rises and makes a legitimate profit

Secondly: Futures and Future Trading - Haram
❌ You don't actually own the currency
❌ Just betting on the price going up or down
❌ Often includes leverage, leading to suspicions of usury and gambling

Conclusion and recommendations
To ensure that cryptocurrency trading is Shariah compliant, the following conditions must be met:
✔️ The existence of the currency's blockchain demonstrates the authenticity of the project
✔️ The currency's objectives are legitimate and free of prohibited activities
✔️ Trading on spot purchase with possession and physical delivery

is strictly forbidden:
❌ Futures speculation
❌ Using usury-linked leverage
❌ Trading currencies with shady projects

Our message:
Amwal seeks to provide a safe and pure investment environment that adheres to ethical and sharia values and supports halal financial innovation, while observing the highest standards of transparency and technology.

Conclusion:
The verdict on cryptocurrencies remains conditional on minute details related to the technology, the project, and the method of transaction.
It is recommended that every trader refer to specialized jurists and official bodies such as the International Islamic Fiqh Academy before delving into this area.

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