Key takeaways
- There is no single certifying body. Compliance means passing tests that individual scholars and councils apply, and they do not all reach the same result.
- The first test, whether a token is property, is the one on which published rulings differ most.
- If a token passes, four further tests apply: interest, uncertainty, gambling and lawful purpose.
- A coin and the way you hold or trade it are judged separately.
- A regulatory licence is not a Shariah ruling, and a halal label is only as good as its named reviewer, method and date.
The short answer
A coin is Shariah-compliant, in the sense most scholars use, when it clears five tests in turn. The tests are the same ones applied to any financial instrument, and the Fasset guide on whether crypto is halal sets out the rulings behind them. This article explains what each test asks. To apply them yourself, follow how to screen a coin for Shariah compliance yourself.
Because the underlying rulings conflict, nothing here is a verdict on any particular coin. It describes the criteria, so that you know what a "compliant" label is claiming.
The threshold question: is it property?
Mal is something with value that can be owned, traded and must be made good if damaged. If a token is not mal, the other tests never arise, which is why rulings on this point matter most.
The Shariah Advisory Council of Securities Commission Malaysia resolved in 2020 that digital assets are property, within its own regulated market, and attached two conditions: the money raised must go to Shariah-compliant purposes, and the rights and benefits attached to the token must be compliant. A fatwa by Mufti Muhammad Taqi Usmani, reported on 10 July 2026, holds that crypto is not property. The Indonesian Ulema Council (MUI) issued its own fatwa in 2021. Which of these positions you follow is a matter for you and your scholar.
The four tests that follow
If a scholar accepts the token as property, four tests remain. Each is a question about the facts.
Interest (riba)
Riba is, at its simplest, any excess a lender stipulates on a loan. Owning a token outright involves no loan. The test is raised where a project or platform pays a fixed rate for holding, locking or lending it. The guide on whether staking is halal shows how this depends on the mechanism rather than the name.
Uncertainty (gharar)
Gharar is uncertainty about what is being exchanged, and it matters when it is excessive. Relevant facts include how many tokens exist, who can change the supply or rules, and whether the token can be delivered to your own wallet. Whether price volatility is itself gharar is disputed between scholars.
Gambling (maysir)
Maysir, also called qimar, is a stake on an uncertain outcome where one side's gain is the other's loss. A purchase that puts the token in your wallet is a sale. A product that only pays the difference between two prices is treated as a wager.
Lawful purpose
The token's issuer or project should not earn its income from interest-based lending, gambling or another prohibited trade, and the money it raises should fund lawful ends.
The criteria at a glance
| Test | Question | Typical red flag |
|---|---|---|
| Property (mal) | Does the token carry value and rights that can be owned and traded? | No stated right or use |
| Riba | Does holding or using it pay a stipulated excess on a loan? | A promised or fixed return |
| Gharar | Is it clear what you are buying and can you take delivery? | Restricted withdrawals; terms that change without notice |
| Maysir | Is it a purchase or a wager? | Contracts that pay only a price difference |
| Lawful purpose | What does the project earn from and fund? | Income from prohibited activity |
| A summary of the criteria described in this guide. A method, not a ruling. | ||
The coin versus how you use it
Compliance is not a permanent property of a token. The same coin can pass when bought outright and delivered to your wallet, and raise the interest, deferred-exchange and gambling tests when used in a futures, margin or lending position. The AAOIFI Shari'ah Standards do not cover crypto-assets, so scholars reason by analogy from standards on currency exchange, futures and margin.
Stablecoins add a further question. Tether's Token Terms of Sale and Service set the redemption price at one US dollar per USDT for its verified customers and contain no clause that pays holders interest or yield, but scholars also ask what stands behind the token. The guide on whether USDT is halal sets out the debate. Fasset's own USD account is a separate product, explained in how a USD account works.
Why a label is not a certificate
Apps and platforms often tag coins as compliant or not. A tag is only as reliable as three things: who reviewed the coin, by what method, and on what date. If none is published, the tag cannot be checked. Fasset's About page says every account, service and investment is delivered without interest, which speaks to the riba test only; the Shariah board and certificates are not yet published. Treat any list, Fasset's included, as a starting point for your own screening. The Fasset FAQ covers other questions about the service, and the fees page lists its charges.
Compliance and licensing are different questions
Whether a token is Shariah-compliant and whether a firm may sell it are separate matters. Fasset FZE holds a VARA VASP Licence for Broker-Dealer Services, reference VL/23/07/002, issued on 30 November 2023, covering activity carried on in or from Dubai. That is supervision of the firm. It is not a Shariah ruling and does not protect the value of what you buy. The guide on whether crypto is legal in the UAE explains how to check a licence. Fasset is not a bank; balances are not bank deposits and are not covered by a deposit guarantee scheme. Impersonators copy licence details, so see Fasset security before acting on any message.
Frequently asked questions
Is there an official Shariah-compliant coin list?
No single list binds every Muslim. Different scholars and councils reach different conclusions, and any list is only as reliable as the named reviewer, method and date behind it. Treat a list as a claim to check.
Does a coin have to be a currency to be compliant?
Not necessarily. The first test asks whether a token is property (mal), meaning something of value that can be owned and traded. Whether crypto qualifies is the point on which published rulings differ.
Can a compliant coin become non-compliant?
Yes. Changes to a project's terms, supply, issuer or income can change the answer to one of the tests, so a result is true only on the day it was checked.
Is a stablecoin automatically compliant because its price is steady?
No. Price stability does not answer the property, interest or lawful-purpose tests. Scholars look at the issuer's terms and at what backs the token. See the guide on whether USDT is halal.
Does staking change whether a coin is compliant?
It can change the answer for that use. Holding a token outright raises no loan, but a fixed rate paid for locking or lending it raises the interest test. The mechanism matters more than the label.
Does a Fasset VARA licence make a coin compliant?
No. Fasset FZE's VARA licence is supervision of a firm and says nothing about whether a token passes the Shariah tests.
Sources
The sources below were opened and read for the Fasset guide on whether crypto is halal, on 12 October 2026. They were not re-opened for this article, which restates the criteria and the points cited from them. Statements about Fasset come from fasset.com, read on 6 and 12 October 2026 for that guide, and the VARA register.
- Securities Commission Malaysia, Resolutions of the Shariah Advisory Council: Digital Assets from Shariah Perspective, 233rd and 234th meetings (29 June and 20 July 2020), sc.com.my/development/icm/shariah/resolutions-of-the-shariah-advisory-council-of-the-sc, accessed 12 October 2026.
- Majelis Ulama Indonesia (MUI), Keputusan Fatwa Hukum Uang Kripto atau Cryptocurrency, 12 November 2021, in Indonesian, mui.or.id/baca/berita/keputusan-fatwa-hukum-uang-kripto-atau-cryptocurrency, accessed 12 October 2026.
- The News International (Pakistan), Cryptocurrency transactions impermissible under Shariah: Mufti Taqi Usmani, 10 July 2026, thenews.pk/print/1425134-cryptocurrency-transactions-impermissible-under-shariah-mufti-taqi-usmani, accessed 12 October 2026. A press report; the fatwa's own text was not read.
- AAOIFI, Shari'ah Standards, English volume, aaoifi.com/shariaa-standards/?lang=en, accessed 12 October 2026.
- Tether, Token Terms of Sale and Service, last updated 26 February 2026, tether.to/en/legal/, accessed 12 October 2026. Tether's reserve reports were not read.
- Virtual Assets Regulatory Authority, public register entry for Fasset FZE, vara.ae/en/licenses-and-register/public-register/fasset-fze/, accessed 12 October 2026.
Not a ruling and not investment advice
For information only. Not investment, legal, tax or religious advice. This guide explains screening criteria and is not a fatwa. Crypto-assets are volatile, and you may lose the amounts you put in.