Shariah Perspectives on Ether (ETH) Analysis of Advisory Opinions from Amanie Advisors and SRB Bahrain

Abstract

The rapid advancement of blockchain technology and the growing adoption of cryptocurrency have triggered significant debates among Islamic scholars regarding their Shariah compliance. One of the most prominent crypto assets is Ether (ETH), the native token of the Ethereum platform, which functions not only as a digital asset but also as a utility token for executing smart contracts and powering decentralized applications (DApps). This study aims to analyze the Shariah perspectives on Ether by analyzing two authoritative fatwas issued by Amanie Advisors and the Shariyah Review Bureau. Using a qualitative, document-based approach, the research investigates how each institution classifies Ether and the conditions under which it is considered permissible. Findings reveal that both Amanie and SRB classify Ether as mal (valuable property) rather than naqd (currency), thereby exempting it from the stringent rulings of bay’ al-sarf. Both institutions assert that Ether is inherently free from riba, gharar, and maysir when used for lawful purposes. However, they emphasize a conditional permissibility framework, where the Shariah status of Ether depends on its actual use cases. This study concludes that Ether can be considered Shariah-compliant within a framework that upholds Islamic ethical values and legal principles, particularly when applied in transparent, benefit-oriented, and non-speculative financial systems. The comparative analysis also highlights the importance of purpose-based evaluation (maqasid shariah) and the need for ongoing ijtihad to navigate the complexities of Islamic digital finance.