Crypto

Definition of "Crypto"

Crypto (or Crypto assets) have gained significant attention from the media, financial markets, governments and regulators.

Crypto is defined broadly as digital units of account in which cryptographic techniques are used to regulate the generation and distribution of units on a blockchain.

For an Islamic opinion on whether crypto assets and cryptocurrencies are halal, you can read: https://islamicmarkets.com/articles/are-crypto-assets-cryptocurrencies-halal

According to Mufti Farah, “since there are various types of crypto-assets, screening crypto-assets for Shari’ah compliance before investing is absolutely essential. The following screenings are reasonable for crypto-assets:”

1. Legitimacy screening – ensuring that the crypto-asset is a genuine project and not a scam.
2. Project screening – ensuring that the project is Shariah compliant.
3. Financials screening – ensuring that it meets the financial criteria for Shariah compliance if it is an equity-based token.
4. Token screening – understanding the Shariah compliance of the token.
5. Staking screening – understanding the Shariah compliance of the staking mechanism.

Read more on: https://islamicmarkets.com/articles/are-crypto-assets-cryptocurrencies-halal

Source of definition: KPMG, Coinbase