Bai al sarf crypto

I have not seen anything related to this on this forum. Nor did I see IFG consider this in their recommendation of coinbase, in IFG crypto guide. So does not sound like it would be impermissible but I want to confirm. so asking it here. Do the rules of bai’ al sarf (currency exchange) apply to Bitcoin?

I ask because Of the Bitcoin I have. I bought most of it from coinbase (not coinbase pro). I bought through the “instant buy with bank account” option. This way, I was able to have the Bitcoin immediately. However, coinbase initiated a bank withdrawal for the payment. So the payment gets withdrawn from my account 3-5 days later.

Coinbase fees are high but this was the best option for me when I bought because I did not want to wait to get approved on other exchanges. My understanding is that this was permissible as the rule of both parties taking possession (spot) in the same siting does not apply to btc. Though I would like to confirm for clarity. I really want to confirm I purchased in a halal manner.

Jazakallah khayr.

Wa alaykum salaam,

The application of Bay al Sarf is not valid for other than gold and silver according to the Hanafi scholars. According to the AAOIFI standards, Bay al Sarf applies in currencies.

As far as BTC is concerned, since it is not yet at par with currencies, it would be difficult to say with certainty that the rules of Bay al Sarf as per AAOIFI criteria.

Nevertheless, out of precaution, there is no harm in applying those rules.

Your trades were fine based on the principles of Bay al sarf.

Allah knows best