Crypto and shariah: investing with faith in a digital age
As muslims around the world embrace new financial technologies, one question continues to surface: Can cryptocurrency be halal? For years, this question sparked debates among scholars, tech entrepreneurs, and regulators alike. Today, the conversation is shifting from whether crypto is halal to how we can make crypto more halal.
At halco, we’re part of a growing movement that is not just adapting to the digital finance revolution, but shaping it through a faith-based lens.
The rise of shariah-compliant crypto
Islamic finance, governed by ethical principles rooted in the Qur’an and Sunnah, prohibits riba (interest), gharar (excessive uncertainty), and haram (unlawful) dealings. That has made many cryptocurrencies, which are volatile, speculative, and unregulated, difficult to align with shariah values.
With that said, recent innovations are changing that!
shariah-compliant crypto ventures like ours are leading a new generation of digital financial tools. These platforms prioritize transparency, ethical contracts, and profit-sharing models that avoid speculation and ensure real economic value.
These halal crypto solutions are gaining recognition from global scholars and financial institutions—proof that there’s growing demand for values-aligned finance in the muslim world.
Blockchain and islamic finance: a natural fit?
Blockchain’s core features (immutability, traceability, and decentralization) mirror the values of accountability and justice central to shariah.
For example, smart contracts can eliminate ambiguity in transactions, reducing gharar and making it easier to comply with Islamic commercial law. Tokenized sukuk (Islamic bonds) and asset-backed coins also offer ways to structure investments around real-world value.
But not all crypto is created equal. The path to halal investing starts with asking: Does it benefit society or merely profit from volatility? Is this token simply speculative or productive?
A framework for halal investing
Scholars have issued fatwas on specific coins or projects, offering muslim investors much-needed guidance. The most studied and approved halal crypto is bitcoin. In particular, the FIQH Council of North America has issued a fatwa in its favor.
One of the most promising models for halal crypto is asset-backed tokens. For example, Gold-backed coins offer stability and intrinsic value, while still providing the benefits of blockchain technology.
It’s great that some scholars have approved certain cryptos! However, it’s still frustrating trying to find and screen investments that truly align with your faith.
That’s where halco comes in.
Why we built halco
halco is the first digital asset platform built by muslims, for muslims offering a curated list of shariah-compliant crypto investments, reviewed by scholars and guided by Islamic economic principles. We don’t just trade coins. We screen them for faith-based criteria and make it easy for users to participate in a confusing, often frustrating financial universe.
Our mission is simple: to help muslims invest in ethical, transparent, and innovative financial tools without compromising their faith.