Sharia Law on Crypto Betting and Gambling
In today’s fast-evolving financial world, the question arises for many: is gambling or betting with cryptocurrency haram (forbidden)? To help you understand the Islamic perspective, let’s dive into what Islam says about gambling and betting, no matter the currency, and how we can purify any haram wealth we may have gained.
Is Gambling with Cryptocurrency Different from Traditional Gambling in Islam?
In Islam, any form of gambling, whether it’s with cash, cryptocurrency, or other assets, is considered haram. Gambling and betting, known as “Maisir” in Arabic, have long been deemed Haram (forbidden) in Islam. This prohibition is rooted in Shariah, as gambling relies on chance, not on fair trade or productive work. Engaging in these activities, regardless of the currency, leads to uncertainty (gharar), promotes dependency on luck rather than skill, and carries a risk of addiction—all elements that go against Islamic principles. This holds for all Muslims, regardless of the type of asset involved, including cryptocurrency.
What Should You Do If You’ve Earned Money Through Gambling or Betting?
If you find yourself with money earned through gambling or betting and want to make it halal, there are steps you can take to cleanse this wealth and seek Allah’s forgiveness. By making sincere efforts to remove haram income from our lives, we aim to align our intentions with the teachings of Islam. Here’s how:
1. Repent to Allah (SWT) with a Sincere Heart
The first step toward purification is sincere Tawbah(repentance). Repent to Allah (SWT) for having engaged in haram activities, and resolve never to return to these actions again. When we turn to Allah with genuine regret, He is always ready to forgive, as long as we intend to stay away from haram means of earning in the future.
2. Dispose of Haram Money in Charity
The money earned through gambling or betting should not be used for personal gain, as it does not carry barakah (blessing). Instead, give this money to charitable causes or the poor to cleanse your wealth. Remember, this donation is not considered zakat since zakat requires pure income. Donating to causes that benefit society, such as feeding the needy, building community resources, or supporting Islamic institutions, is a way to rid yourself of haram funds and replace them with halal earnings.
Can’t Separate the Haram Money from Your Wealth? Try These Solutions
If gambling earnings are mixed with your entire wealth and it’s hard to separate them, there are three ways to approach this situation:
Option 1: Estimate and Donate the Same Amount as Sadaqah
If you have a rough idea of how much money was gained from gambling or betting, then calculate this amount and give it in sadaqah. This charity should be directed toward people in need or charitable projects, without expecting any personal gain or reward. Here you can pay Sadaqah in various cryptocurrencies such as Bitcoin, Ethereum and more…
Option 2: Give Khums if Haram Earnings Are Minor
If you’re uncertain about the exact amount but know that it’s a small part of your wealth, you can purify it by giving khums. This involves giving one-fifth of your wealth to charity, which is a portion that, in Islamic tradition, serves to purify earnings. Here you can pay Khums in various cryptocurrencies such as Bitcoin, Ethereum and more…
Option 3: Donate a Larger Amount if Haram Earnings Are Substantial
If a large part of your wealth is believed to contain haram earnings from gambling or betting, consider giving more than khums in charity. The amount depends on what brings you peace and what you feel is sufficient to purify your wealth. Some Muslims, in pursuit of full peace of mind, donate a major portion or even all of their wealth if they feel it’s heavily mixed with haram income. Allah knows our intentions best, and in striving for a pure heart, we seek His acceptance of our actions.
Seeking Allah’s Satisfaction and Inner Peace
In our journey as Muslims, we aim to preserve our religion and keep our earnings and hearts pure. By repenting sincerely, donating haram funds to charitable causes, and taking actions that align with Islamic principles, we show our dedication to living in a way that pleases Allah.
Remember, Allah sees every action and knows our intentions. He understands when we strive to cleanse our lives and make our wealth pure, and He rewards the effort to keep haram out of our lives. May Allah grant us success in our intentions, accept our efforts, and guide us on the path of purity, honesty, and peace.
