Which crypto assets are considered Shariah Compliant?

Are you a Muslim investor wondering which cryptocurrencies are Shariah Compliant? Certain crypto assets listed on Luno’s exchange have been deemed as Shariah Compliant by the Securities Commission Malaysia (SC).

Shariah Compliant crypto assets

Based on extensive research conducted by the Shariah Advisory Council (SAC) of Securities Commission Malaysia (SC), Luno can confirm that the following cryptocurrencies comply with Shariah law:

• Bitcoin (BTC)

• Ethereum (ETH)

• Cardano (ADA)

• Ripple (XRP)

• Solana (SOL)

• Polygon (MATIC)

• Avalanche (AVAX)

• Chainlink (LINK)

• Uniswap (UNI)

• Cosmos (ATOM)

• Litecoin (LTC)

• Stellar (XLM)

What is Shariah Compliance?

Shariah Compliant crypto assets are digital currencies that align with Sharia Law, forming a niche within Islamic finance and the broader cryptocurrency ecosystem. These coins follow Islamic principles that prohibit interest (riba), promote ethical and transparent business practices, and restrict involvement in haram industries such as alcohol, gambling (maysir), and tobacco. They must also steer clear of excessive uncertainty (gharar) and ideally be structured around profit-and-loss sharing rather than fixed returns.

To determine whether a cryptocurrency is Shariah Compliant, a thorough screening process is conducted. This involves confirming the project's legitimacy, ensuring its operations adhere to Sharia Law, and evaluating its financial practices for compliance, especially in the case of equity-based tokens.