Short answer
Scholars differ. Several leading Hanafi fatwa institutions in South Asia have advised against cryptocurrency, citing extreme uncertainty and the lack of real backing or legal status. Other scholars accept established coins as a digital asset that may be bought and sold on the spot. Both sides forbid leveraged crypto trading, interest-like lending and coins built for gambling or fraud.
There is no single settled Hanafi fatwa. Many Deobandi muftis advise avoiding cryptocurrency or treat it as doubtful; others allow spot buying and selling of established coins, treating them as property (mal) whose value is recognised by custom. Margin, futures, fixed-yield lending and speculative coin trading are not permitted on either view.
The four schools agree on this.
Explanation
The question turns on whether a coin is mal (lawful property). Hanafi jurists define mal as something people value and store for later need, and custom decides much of that. Those who permit crypto say that established coins are now valued, traded and accepted widely. Those who object point to the lack of any asset or issuer behind them, wild price swings, anonymity used in crime, and a market that behaves like a casino, which they see as gharar.
What both views agree is not allowed:
- Leverage, margin and futures or perpetual contracts.
- Lending coins for a fixed return, which works like interest.
- Coins whose purpose is haram, and pump-and-dump or meme coins bought purely as a bet.
- Hiding income or breaking the law of your country.
Staking rewards are debated: some scholars treat proof-of-stake rewards as payment for work securing the network, while others see a fixed yield as close to interest. Ask before staking.
Between the clearly halal and the clearly haram lie doubtful matters, and the Prophet ﷺ advised leaving what makes you doubt. If you follow the permissive view, keep to spot purchases of established coins, use money you can afford to lose, and pay zakat on their market value with your other assets; see the zakat calculator. The difference here is between contemporary scholars, not between the four schools.
Ask a mufti about your own case. This answer explains the general ruling. When the details of your situation matter, as they do here, ask a qualified mufti and give them the full facts. Where to ask a scholar.
The evidence
Quran, Surah An-Nisaa 4:29
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ ۚ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًۭا ﴿٢٩﴾
O you who have believed, do not consume one another's wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful.
Gain must come through lawful, fair exchange.
Quran, Surah Al-Maaida 5:90
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوٓا۟ إِنَّمَا ٱلْخَمْرُ وَٱلْمَيْسِرُ وَٱلْأَنصَابُ وَٱلْأَزْلَٰمُ رِجْسٌۭ مِّنْ عَمَلِ ٱلشَّيْطَٰنِ فَٱجْتَنِبُوهُ لَعَلَّكُمْ تُفْلِحُونَ ﴿٩٠﴾
O you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone alters [to other than Allah], and divining arrows are but defilement from the work of Satan, so avoid it that you may be successful.
Trading that is really betting is forbidden on every view.
Sahih al-Bukhari 52
Sahih... الحلال بين والحرام بين وبينهما مشبهات لا يعلمها كثير من الناس ...
"The halal is clear and the haram is clear, and between them are doubtful matters that many people do not know."
Where scholars differ, caution is praised.
Jami' at-Tirmidhi 2518
Graded sahih... دع ما يريبك إلى ما لا يريبك ...
"Leave what makes you doubt for what does not make you doubt."
Leaving a doubtful matter is the safer path.
Where the ruling is recorded
- Radd al-Muhtar (Ibn Abidin), Kitab al-Buyu', opening discussion of the definition of mal. Mal is what people incline to and can store for need, which is the test applied to crypto.
- al-Hidaya, Kitab al-Buyu', on sales with gharar. Sales with excessive uncertainty are invalid.
This answer is pending review by the scholars on our team. Quran translation by Sahih International. Hadith Arabic from the standard editions of the six books and the Muwatta, with gradings as recorded there; the English is our own rendering. Spotted a mistake? Tell us.