How Do Muslims Handle Trading Bans Legally and Ethically?

Answered by Shaykh Muhammad Carr

Question

How can I navigate restrictions on cryptocurrency, forex, and commodities trading in a country where they are banned, while ensuring compliance with both Shari‘a and local laws?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

I hope you are in good health and faith. Thank you for your question.

The Shari‘a compliance of cryptocurrency, forex, and commodities trading can be determined by consulting an expert scholar, as there is no universal ruling on these matters due partly to their diverse nature. Allah says,

“Ask the people of remembrance if you do not know.” [Quran, 21:7]

If trading in specific instruments is prohibited by local law, it is generally for a valid reason. Islamic law typically supports a local ban that benefits society as a whole. As citizens, I believe these bans should not be violated without just cause.

And with Allah alone is our success.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefited from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.