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Is Ethereum Classic (ETC) halal?
The six conditions are met for a spot purchase.
Verdict calculated by Halal Bourse's published rules from an investigation of primary sources (project documentation, registers, decisions), conducted on 10/07/2026 and not reviewed by a human.
The asset
Native currency of the Ethereum Classic network (layer-1 smart contract platform, Etchash proof of work), which emerged in 2016 from the original Ethereum chain after The DAO incident Issuer: No issuer: the MiCA white paper states that the project is not led by a central legal entity but is supported by community organizations such as the Ethereum Classic Cooperative Inc.; Grayscale's prospectus states that its development has been overseen by a group of developers affiliated with ETC Labs, ETC Core and/or the Ethereum Classic Cooperative..
ETC pays transaction fees and the computation cost of smart contracts on the Ethereum Classic network and rewards miners. Supply is capped at 210.7 million ETC (ECIP-1017: block reward reduced by 20% every five million blocks, about every two years; 2.048 ETC per block since May 2024). According to CoinMarketCap, 158.67 million ETC in circulation as of October 7, 2026 (rank 56); according to Grayscale's prospectus, about 154.9 million as of December 31, 2025.
Why this verdict
- Permissible purpose : met. ETC is used to pay transaction fees and the computation cost of smart contracts on the Ethereum Classic network; the use is described by the MiCA white paper filed in Germany and by a fund's annual report filed with the SEC.
- « Network participants use ETC to pay transaction fees and computational costs associated with executing transactions and smart contracts » Crypto Risk Metrics GmbH (MiCA white paper, filed with BaFin) (2026-06-01)
- « ETC is used to pay for transaction fees and computational services » Grayscale Ethereum Classic Trust (rapport annuel 10-K, SEC) (2026-03-12)
- No riba : met. Holding ETC pays no return: the network is proof of work, with no staking or validator reward, and no balance changes other than through a transaction by the holder. No loan is involved in a spot purchase.
- « it does not feature staking, validator rewards, or a slashing mechanism, and ETC cannot be deposited into a protocol-level staking contract » Crypto Risk Metrics GmbH (MiCA white paper, filed with BaFin) (2026-06-01)
- « does not confer ownership, profit participation, governance rights over any entity, or any form of economic entitlement » Crypto Risk Metrics GmbH (MiCA white paper, filed with BaFin) (2026-06-01)
- No gambling : met. A spot purchase is of a network's native token, used to pay fees and for goods or services on that network; it is not a contract on a price difference.
- « ETC can be used to pay for goods and services on the Ethereum Classic Network » Grayscale Ethereum Classic Trust (rapport annuel 10-K, SEC) (2026-03-12)
- No excessive gharar : met. The issuance rules are published and final (ECIP-1017, status “Final”: cap of about 210.7 million, reward reduced by 20% every five million blocks); the initial distribution is that of Ethereum at its 2015 launch (72 million units created at launch), renamed ETC after the July 2016 fork. No entity controls the network: rules change through voluntary adoption of new versions by nodes and miners, following public proposals (ECIP). No anonymous party controlling issuance, the treasury or the keys was found.
- « The maximum supply of the crypto-asset is limited to 210,700,000 tokens » Crypto Risk Metrics GmbH (MiCA white paper, filed with BaFin) (2026-06-01)
- « The amount of ETC awarded for solving a new block is automatically reduced by 20% after every five million blocks » Grayscale Ethereum Classic Trust (rapport annuel 10-K, SEC) (2026-03-12)
- Real ownership : met. ETC is held in a personal wallet (software or hardware) whose keys the user keeps: the project's website lists many wallets and recommends a hardware wallet for large amounts, and the MiCA white paper states that a wallet's balance changes only through a transaction by its holder. The choice of purchase platform was not studied.
- « There are many options of wallets to choose from to secure and use ETC » Ethereum Classic (project website, wallets page) (2022-08-11)
- « If you are holding larger amounts, it is highly recommended to purchase a Hardware Wallet » Ethereum Classic (project website, wallets page) (2022-08-11)
- No fraud or manipulation : met. No sanction or deception toward ETC buyers was found; the AMF blacklist and the IOSCO I-SCAN return nothing for “ethereum classic”. The network suffered 51% attacks by third parties (January 2019 double spend by an unknown actor; the prospectus then mentions a “limited number” of 51% attacks, which led to protection against chain reorganizations in October 2020): network security incidents, not deception by the team. The 100 largest wallets hold about 80% of ETC (exchanges included): concentration alone, information under the Halal Bourse rule. The GoPlus scan does not apply to the native currency (see scan_securite for the BNB Chain version).
- « double-spend attack by an unknown actor that gained more than 50% of the processing power » Grayscale Ethereum Classic Trust (rapport annuel 10-K, SEC) (2026-03-12)
- « in response to a limited number of 51% attacks, Ethereum Classic implemented M.E.S.S. Client Functionality in October 2020 » Grayscale Ethereum Classic Trust (rapport annuel 10-K, SEC) (2026-03-12)
- Réseau ouvert et généraliste : met. un outil neutre
- « No single entity owns or operates the Ethereum Classic Network » Grayscale Ethereum Classic Trust (rapport annuel 10-K, SEC) (2026-03-12)
- « Ethereum Classic is a public blockchain network supporting smart contract execution and decentralised applications. » Crypto Risk Metrics GmbH (MiCA white paper, filed with BaFin) (2026-06-01)
Tolerance case
T1. ETC is the native currency of an open network (proof of work: any miner or node operator can take part, and no entity owns or runs it) and a general-purpose one (payments and smart contracts). No issuer earns revenue from holding the token (T2 and T3 do not apply).
Contract security scan
The starting file scans only the token's version on BNB Chain (0x3d65…c25e), which is not the native ETC currency but a representation on another chain: only 949,833 units, about 0.6% of ETC in circulation; the contract creator (0xfc19…) is not identified. GoPlus scan: 41,472 holders; code published; token on GoPlus's trust list; no honeypot or tax; minting and blacklist “unknown” (the contract is a proxy, which prevents reading). Signals found: contract modifiable through a proxy; top ten wallets excluding exchanges and contracts: 53.9% of this version's supply. Reading: the scan does not apply to the native currency (rule A.8); these two signals concern a bridged version from an unidentified issuer and are not used for c6, which judges the purchase of the native currency. For Halal Bourse to decide: if the site offers this BEP-20 contract for purchase, the two-signal rule would disqualify it.
Opinions found during the research
- CryptoUmmah (site by Thanvir, former director at S&P Global Energy; review attributed to Imam Omar Siddiqi) : Compliance score 76.3 out of 100, “Halal · Recommended with Purification”; asks that DeFi protocols built on the network be examined; gharar scored 69.3 (“moderate”) (2026-07-13) source
- Sharlife (Malaysian Shariah screening site, not a scholar) : The page states that the analysis of ETC is close to that of bitcoin (store of value, proof of work) and that “Ethereum Classic is Shariah compliant”; last review shown: Q1 2022 (source more than eighteen months old) (2022-Q1 (page read on 2026-10-07)) source
- Halal Screener (automated screening site, not a scholar) : “Halal”, score 85/100 (grade A): qualitative screening based on the protocol's use and mechanics; no AAOIFI standard for crypto (2026-10-07) source
- Islamic Finance Guru (site editorial team) : The site's crypto list shows “Yes” in the “Halal?” column for Ethereum Classic (ETC), with no comment of its own (2026-10-07) source
Opinions reported as read, named for what they are; they do not enter into the calculation of the verdict.
What could not be verified
- Concentration of native-currency holders (top ten wallets excluding exchanges) and distribution of hash power among mining pools: not retrieved; only the 80% figure for the top 100 wallets (Grayscale's prospectus) was read.
- 2020 attacks: only Grayscale's prospectus (mention of a “limited number of 51% attacks”) was read; amounts, dates and perpetrators of the August 2020 attacks not verified by a primary source.
- Governance of the Ethereum Classic Cooperative (board, treasury, signers) and current status of ETC Labs and ETC Core: not read; only the mention of the treasury in the MiCA white paper was found.
- BEP-20 version on BNB Chain: contract issuer, bridge mechanism and nature of the proxy not identified; minting and blacklist “unknown” for GoPlus.
- Sanctions and litigation: web search with no ETC-specific result; no direct consultation of the enforcement databases of the SEC, the CFTC or OFAC.
- The AMF search on “ethereum classic” covers only that name; it does not rule out entries under other imitation names.
- Crypto Risk Metrics MiCA white paper: partly read (characteristics, rights, risks of non-remuneration, treasury); MiCA-licensed platforms in France not researched.
- Project website wallets page dated August 11, 2022 (source more than eighteen months old, product list not rechecked); “Foundation” page dated February 22, 2022.
Sources read
- Crypto Risk Metrics GmbH, livre blanc MiCA Ethereum Classic Ether (1er juin 2026)
- Grayscale Ethereum Classic Trust, 10-K annual report for fiscal year 2025
- Ethereum Classic, page d'accueil
- Ethereum Classic, portefeuilles
- Ethereum Classic, the foundation
- ECIP-1017, monetary policy and final modification of the issuance schedule
- ESMA, interim MiCA register
- AMF, listes noires, recherche « ethereum classic »
- OICV, I-SCAN, recherche « ethereum classic »
- GoPlus Security, ETC contract on BNB Chain
- CryptoUmmah, Is Ethereum Classic Halal?
- Sharlife, Ethereum Classic
- Halal Screener, Ethereum Classic (ETC)
- Islamic Finance Guru, liste crypto
Other cryptos analyzed
- Hyperliquid Prohibited
- TRON Questionable
- Pepe Prohibited
- Pump.fun Questionable
- Aster Prohibited
- Bitcoin Cash Permitted
- Mantle Questionable
- Hedera Permitted
General information: neither investment advice nor a fatwa. Verdict calculated by published rules, from financial statements read automatically and not reviewed by a human. Read the methodology