While Bitcoin introduced a secure, decentralised digital currency, thousands of altcoins (alternative cryptocurrencies) have since emerged. Most lack Bitcoin’s security, decentralisation, and resilience, and are often centralised under companies or individuals. Many are created easily, sometimes for unjust profit, leading to speculation and low value projects. From an Islamic (Sharīʿah) perspective, altcoins must meet the conditions of wealth (māl) and value (taqawwum) to be permissible. Those with low liquidity or prohibited elements (like interest) are often not compliant. There are also serious concerns about market manipulation, especially schemes like “pump and dump,” which deceive investors and contradict Islamic ethics. Even those not directly involved may profit at the expense of others, raising ethical red flags.

Dr. Mufti Abdur-Rahman Mangera: