Staking crypto currency

Question:-

I write to you seeking assistance with the following:

Is it permissible to stake crypto currency on the Cosmos platform?

Answer:-

Our Darul Ifta has reservations in regards to the Shariah compliancy of Bitcoin / crypto currency. We therefore advise abstention.

Assuming bitcoin / crypto was Shariah complaint, then too staking crypto would not have been permissible. The so called ‘Rewards’ earned by staking is in actual fact interest which is Haraam.

We therefore advise abstention from all forms of Crypto / Bitcoin and other related matters.

ALLAH TA’ALA KNOWS BEST!

ANSWERED BY:-

Mufti Mohammed Desai

Date: 29 Jumad-al-Ula 1443 / 03 January 2022