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Islamic Coin

Is Islamic Coin (ISLM) Halal or Haram?

AI Assisted Shariah Verdict
Last Update: 8/11/2026
Halal

SUMMARY

Islamic Coin (ISLM) is the native token of the Haqq Network, a Shariah-compliant Layer 1 blockchain. It passes all core Shariah criteria as it operates neutral infrastructure, derives 100% of its revenue from permissible gas fees, and utilizes an on-chain Shariah Oracle to prevent haram activities. The native PoS staking mechanism is a permissible validation service.

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Verdict by Activity

How you can hold and use ISLM

Buy & Hold

Halal

ISLM is a native Layer 1 token with clear utility, no haram business activities, and 100% clean revenue from network gas fees.

Native PoS Staking

Optional
Halal

Holders can actively delegate ISLM to secure the network for a share of block rewards and fees, which is a permissible validation service (partially funded by inflation).

Shariah Component Breakdown

Shariah Analysis

Infrastructure — where it runs

Passed

The Haqq Network is a neutral, general-purpose Layer 1 blockchain.

Application — what it does

Passed

The project operates a Shariah-compliant Layer 1 blockchain with an on-chain Shariah Oracle to prevent haram smart contracts, and has confirmed absence of riba, maisir, and haram industry exposure.

Asset — what you own

Passed

The token is used for network gas fees, governance, and native PoS network-security staking, which is a permissible validation service.

Property Status (Māl)

Passed

ISLM is a native protocol position with confirmed lawful utility, ascertainable supply, and no discretionary freeze authority.

Revenue Purity

Passed

100% of the protocol's revenue comes from transaction (gas) fees, with no Shariah-problematic sources identified.

Legitimacy & Security

project audits

Caution

While security information is found, the research notes do not explicitly name an independent auditor or confirm a completed audit.

social presence

Passed

The project has secured substantial institutional funding ($400M+) and partnerships, indicating a strong market presence.

whitepaper

Passed

The project provides a comprehensive whitepaper detailing tokenomics, emission schedules, and governance structures.

Team & Ecosystem

team background

Passed

The project team is public and has secured significant institutional backing.

Detailed Shariah Report

Overview

Islamic Coin (ISLM) is the native cryptocurrency of the Haqq Network, a Layer 1 blockchain designed to provide ethical Web3 infrastructure for the global Muslim community. The token is used to pay for network transaction fees, participate in governance, and secure the blockchain through Proof-of-Stake validation.

Why This Verdict

The Shariah compliance of this asset is evaluated across three distinct layers: the underlying infrastructure, the business application, and the asset itself. A failure at any one layer fails the whole asset. First, the infrastructure is the Haqq Network, a neutral, general-purpose Layer 1 blockchain. Second, the business activity is fully compliant; the network derives 100% of its revenue from permissible transaction (gas) fees and utilizes an on-chain Shariah Oracle to actively prevent the deployment of smart contracts related to haram industries. Third, the asset qualifies as recognized digital property (Mal) in Islamic commercial law. It is a native protocol position, meaning the holder owns the digital asset itself rather than a debt or redemption claim against an issuer. It qualifies as property because it presently exists on-chain, has an ascertainable supply governed by fixed rules, is fully transferable via self-custody without discretionary freeze authorities, and carries genuine lawful utility in the form of paying for blockspace. Based on this matrix, simply buying and holding ISLM is Halal, as the token has clear utility and zero exposure to riba (interest) or maisir (gambling). Beyond holding, users may choose to participate in an opt-in mechanism: Native PoS Staking. This activity is also Halal. Holders can actively delegate their ISLM to validators to secure the network in exchange for a proportional share of block rewards (newly minted ISLM) and transaction fees, which constitutes a permissible validation service.

Permissible Aspects

  • 100% of protocol revenue is derived from permissible transaction (gas) fees.
  • The network employs an on-chain Shariah Oracle to block the whitelisting and deployment of haram smart contracts.
  • The Evergreen DAO treasury is governed by a Shariah board and funds Islamic charities and ecosystem projects without conventional interest-bearing investments.
  • The opt-in Proof-of-Stake (PoS) staking mechanism provides a permissible yield by compensating users for the legitimate service of securing the network.

Points of Caution

  • !While security information is available, research notes do not explicitly name an independent auditor or confirm a completed third-party security audit for the protocol.

Purification Note

Not applicable. The protocol derives 100% of its revenue from permissible transaction fees, and the treasury does not engage in interest-bearing investments. Therefore, no purification is required for holding or staking the token.

BOTTOM LINE

Islamic Coin (ISLM) is a Shariah-compliant Layer 1 cryptocurrency that powers the Haqq Network, a blockchain explicitly designed to align with Islamic financial principles. Both holding the token and participating in its native staking mechanism are permissible, as the network relies entirely on clean revenue from gas fees and actively blocks haram activities via an on-chain oracle. Please note that this report provides analytical research, and final religious authority rests with a qualified scholar.

How this verdict was reached

This is not an opinion issued by ShariaQuant. It is the output of a documented screening methodology applied to researched facts about Islamic Coin (ISLM), and every row above states the specific evidence that drove it — so the reasoning can be examined rather than taken on trust.

The framework screens three layers — the infrastructure an asset runs on, the application it serves, and the asset itself — and separately tests whether the token qualifies as recognised property (māl): that it presently exists, has an ascertainable supply, can be held and transferred, and carries a genuine lawful use. A failure at any single layer fails the asset.

Revenue-purity thresholds follow the AAOIFI screening standard: non-compliant income below 5% of revenue is tolerated and purified, while 5% or above fails the screen.

The framework follows published scholarship rather than in-house opinion. Treating a digital asset as a right (ḥaqq) that becomes recognised property (māl) only on stated conditions follows “Is Crypto Halal? The Definitive Shariah Guide to Crypto and Digital Assets” by Mufti Faraz Adam (Amanah Advisors, 2026), which reproduces the conditions identified by Mufti Taqi Usmani. Financial thresholds follow the AAOIFI screening standard. The rulings we track are collected in the fatwa library.

AAOIFI has not reviewed, approved or endorsed this report or ShariaQuant, and no scholar named in our methodology has reviewed this individual verdict. This is analysis, not a fatwa — final religious authority rests with a qualified scholar.

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