Saudi Arabia:
Status: Cryptocurrencies are not recognized as legal tender. In 2018, the Central Bank of Saudi Arabia (SAMA) issued a warning about the risks of trading cryptocurrencies, and in 2021, it tightened its ban on financial transactions with them.
Regulation: There is a complete ban on the use of cryptocurrencies in the banking system. Private ownership is not prosecuted, but trading and exchange are severely restricted.
Context: The government is promoting its own digital currency as part of Vision 2030, working with the UAE to test a CBDC (Project Aber) that could replace private cryptocurrencies.
United Arab Emirates (UAE):
Status: One of the leaders in crypto innovation among Islamic countries. Dubai is actively developing the blockchain ecosystem, aiming to become a "crypto capital".
Regulation: In 2022, the Virtual Assets Regulatory Authority (VARA) was established in Dubai, which issues licenses to crypto exchanges (for example, Binance received a permit in 2023). Cryptocurrencies are classified as assets, not currencies, with strict KYC/AML.
Sharia: Some stablecoins and tokens are considered halal if they are pegged to real assets (e.g. gold).
Malaysia:
Status: Cryptocurrencies are permitted as investment assets, but not as a means of payment.
Regulation: Since 2019, the Securities Commission (SC) has regulated crypto exchanges, which must comply with Sharia principles. In 2024, several platforms offering "halal" tokens were certified.
Context: Malaysia is testing a CBDC (digital ringgit) that could compete with private cryptocurrencies.
Indonesia:
Status: In 2021, the Ulema Council (MUI) declared cryptocurrencies haram due to speculation, but the government has not imposed a complete ban.
Regulation: Since 2023, cryptocurrencies have been regulated as commodities by Bappebti (the Commodity Futures Regulatory Agency). Payment use is prohibited, but trading is permitted.
Trend: In 2025, X mentioned the growth of P2P transactions, despite religious warnings.
Iran:
Status: Cryptocurrencies are legal for international trade to circumvent US sanctions.
Regulation: Since 2019, the Central Bank of Iran has allowed mining (with a license) and in 2022 recognized cryptocurrencies as a tool for import. However, domestic use is limited.
Context: The government is developing a digital rial, testing of which began in 2024.
Egypt:
Status: Cryptocurrencies have been banned since 2018 following a fatwa from Dar al-Ifta, which declared them haram due to fraud and lack of real collateral.
Regulation: Complete ban on trading, mining, and use. Banks do not service crypto transactions.
Context: The government is focused on traditional finance and has no plans to change.
Pakistan:
Status: Cryptocurrencies do not have legal status, but the ban is not absolute.
Regulation: In 2018, the State Bank of Pakistan banned banks from dealing in cryptocurrencies, but in 2024, the Securities and Exchange Commission (SECP) began consultations on regulation.
Trend: Underground trading is increasing due to economic instability.
Trends and Outlook (2025)
Religious Influence: In countries where Sharia is the basis of law (Saudi Arabia, Egypt), cryptocurrencies are more likely to be banned. In more secular or pragmatic jurisdictions (UAE, Malaysia), they are adapted to Islamic principles.
CBDC as an Alternative: Many countries (Saudi Arabia, Iran, UAE) are investing in central bank digital currencies, seeing them as a controlled substitute for decentralized cryptocurrencies
Economic motivation: In countries with sanctions (Iran) or global hub ambitions (UAE), cryptocurrencies are seen as a tool to circumvent restrictions or attract investment.
Activity on X: In February 2025, social media mentioned the growing interest in cryptocurrencies in Muslim countries due to inflation and devaluation of local currencies, although official bans are holding back mass adoption.
Conclusion
Cryptoregulation in Islamic countries ranges from complete bans (Egypt, Saudi Arabia) to progressive approaches (UAE, Malaysia). Religious interpretations and the desire for financial control shape policy: some countries see cryptocurrencies as a threat, others as an opportunity. In 2025, the trend towards the development of Sharia-compliant tokens and CBDCs is likely to intensify, especially in economically active regions such as the Gulf.
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